Do Superstars Still Need Record Labels?

[method77]

Prince freed himself from record labels years ago. Paul McCartney, Radiohead and Nine Inch Nails have followed. Now the Material Girl appears to be kissing her big-name record company goodbye for a cool $120 million.

Could U2 be next? Justin Timberlake? Coldplay? Do superstars even need traditional multiyear album contracts when CD sales are plummeting and fans are swiping tons of music for free online, or tuning in to their favorite bands via YouTube, MySpace and other Internet portals?

"There's a prevailing wisdom that many established acts don't need a record label anymore," said Bruce Flohr, an executive at Red Light Management, which represents artists such as Dave Matthews Band and Alanis Morissette, and ATO Records, home to David Gray, Gomez and Crowded House, among others.

"This is the new frontier. This is the beginning of a new era for the music business," Flohr said.

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[DudeAsInCool]

The major record labels still have the ability to mass distribute music. The main reason, however, for their lack of sales isn't p2p, or the ability to get around their distribution on the web - it's the lack of exciting new acts and music that people want to buy.

[rainbowdemon]

Poor cd sales are because most of what's being released is crap. In my opinion, anyway.