Record labels have been attached to the music industry since its dawn. But what makes them important? In this artist’s opinion: nothing, anymore.
Imagine your favorite social media site—video-based, ideally, like TikTok or Instagram. You have your “For You” feed, an algorithm curated to your interests, sense of humor, or taste, to offer a constant stream of new content alongside videos posted by accounts that you follow.
This principle of curated feeds can be applied to anything.
It works for X (formerly known as Twitter) and its spinoffs, like Threads and BlueSky, even without incorporating video format. A statement made by Meta executives suggests that “Reels have driven a more than 40 percent increase in time spent on Instagram since its launch”—which my screen-time statistics back up. So why hasn’t this kind of algorithm-driven, discovery-first approach made it to streaming platforms made for music?
While platforms like Apple Music and Spotify offer algorithmic playlists—like Top Picks for You, Discover Weekly, or Daylists—they fall short of showcasing emerging artists. These algorithms analyze the listening patterns of each of its users and using these habits to create playlists for similar listeners.
So, while many artists have luck in that they can rise to fame near overnight, this feat is dependent on the habits of their existing fanbase. However, these platforms are revolutionary in their ability to work in tandem with video-based social media platforms, which can bring attention to an artist overnight with enough engagement.
TikTok and Instagram Reels both serve as platforms to find up-and-coming artists, especially with the rapid algorithm configuration that these apps feature, but now that existing technology provides a foundation for musicians to jumpstart their careers, aspiring artists are looking for a site based around their needs.
Because here’s the issue: to have a song professionally recorded, mixed, and mastered music is expensive. According to Anna Paulson from Music in Minnesota,“[t]he total cost…can range from $6,000 to $30,000” to have an experienced sound engineer prepare an album for release.
Record labels exploit this financial barrier, purchasing the talent and independence of aspiring musicians early in their careers to own the rights to their clients’ music and obligate them to write more. So, the joy? Gone.
While labels have historically helped artists find their footing, their necessity has decreased over recent decades. Pete Armitage of Kiss Your Ears explains that “[r]ecord labels were previously necessary to navigate the complex network of distributors, press agents and manufacturing bodies required to publish and sell physical music. This whole process is now largely obsolete, with over 75% of recorded music revenue coming from streaming.”
As technology advances, the role of record labels as essential intermediaries continues to diminish, with many artists often opting out of services because labels often obligate clients to produce more music, alter their style to fit the label’s aesthetic, or even prevent songs from being released. This has allowed direct-to-fan models to gain traction, allowing independent artists to market their music, track sales, and communicate with fans directly on services like Patreon, Royalty Exchange, and SongVest.
Patreon allows users to create a membership platform that lets fans “pay a subscription fee for early access to music, digital rewards or physical goods,” offering artists a source of recurring income. However, these models often rely on creators’ ability to rapidly produce content for months on end, which can alienate fans if the perceived value diminishes, and do little to support emerging artists who have yet to build a significant following.
Royalty Exchange and SongVest have both created a marketplace for buying and selling royalties, allowing creators to monetize income from streams, publishing rights, and film or television revenue. According to the Royalty Exchange site, “[a]ll listed assets have historical income, [have been]cleared for assignment by [their]team, and [are]open for offers today.” This highlights the platform’s emphasis on transparency, with each asset carefully vetted for verified income history and transferability. However, regulatory hurdles, such as those surrounding SongVest’s Regulation A offerings, highlight the challenges these platforms face in maintaining legitimacy.
Despite these options, the industry still lacks a functional method for fans to invest in up-and-coming musicians before they have an income history and without obligating creation for the sake of fulfilling investors, presenting significant hurdles for the artists who need funding most.
Because it’s so easy to stream music nowadays, it feels redundant to spend money on a digital copy of music; however, a platform that allows fans to invest in new, unreleased music could revolutionize the creative process.
By allowing fans to invest in their favorite upcoming artists, the artistic focus of online demographics could be shifted toward groups who don’t yet have a following. This would offer a more realistic route to discovery that allows listeners to directly support up-and-coming artists and feel included in the creative process and foster a more inclusive music ecosystem while empowering artists to maintain control over their work.
Fans—or investors—could donate directly to artists so they can record and release music, and then earn royalties based on the success of the song and the percentage of the song that they “bought.” In other words: you could purchase stock in an unreleased song before a copy of the song itself. This model would empower artists to retain ownership of their music while providing fans with a meaningful way to support their favorite creators.
Many low-income artists are currently unable to create quality recordings to release to their fans because they don’t have the funds upfront. This makes the investment opportunity even more useful to those who are passionate and talented enough to write music that people want to listen to but who don’t have the means to finish it.
The potential for investors—especially those who are genuine fans—would make a significant impact on both the financial situation and the confidence of artists worldwide, creating a robust and vibrant online community that connects listeners to the musicians they support in a way that couldn’t be done without today’s technology.
Veterans dominate the current music scene—fans flock to artists with big followings, making it difficult to make a name for oneself even with the advancements brought by social media. Excessive amounts of money go toward the artists who no longer need that money to continue with their craft—the swag bags given to performers and nominees at the Grammys and other major award shows are a prime example of that. Just this year, each performer and presenter at the Grammys received approximately $35,000 worth of gifts.
It’s time for the industry’s dependence on recording labels to make way for the fans willing to support artists who create for themselves, not for money. Art is worthless if not thoughtful—by prioritizing passion and creativity over perfection, we can redistribute resources to the artists who need them most and create a culture that values art for its own sake.
Ultimately, this vision is about more than just disrupting record labels—it is designed to build community and foster a sense of shared ownership, making supporters feel like active participants in the creative process and offering reassurance to artists who have yet to gain footing in the industry despite having written good music. By rewarding passion and creativity over perfection, we can foster a culture that values music for what it truly is: a form of storytelling, expression, and connection.
Featured Image: Rob Simmons (Unsplash)
