I hate it when people equate piracy with theft...it's copyright infringement, not theft. If someone breaks into my car and steals my iPod, that's theft. I, the original owner, no longer possess the item. If instead the "thief" breaks into my car and copies all of the music from my iPod (let's say that all of the songs are recordings of my band to make things simple) and posts it on several torrent trackers, that's pi…
| Since all of these songs are always instantly available | to me, these artists are still within reach, even the | one-hit-wonders from yesteryear. If I hadn't downloaded | Fastball's "Outta My Head" back in 1998, I would never | have gone to see them perform at the Viper Room in 2008 | (it was the illegal download of a B-side that made me | appreciate them more than hearing "The Way" on the | radio). While that may…
You're addressing a whole other issue here. First off, there is a movement among record labels to grab a portion of revenues beyond record sales (the 360-deal [1]).
Second, you raise the question of whether record labels are needed at all in the first place. Similar to bootstrapping a startup, a musician can take a very DIY approach to their careers. In fact, one could argue that a musician is virtually identical to an entrepreneur. They build their band/company by creating music/a product that fans/people want.
Startups are incredibly cheap to do today because of changes in technology--open source, cloud computing, etc etc. In that same regard, starting out as a musician does not require the millions of dollars from Warner Bros. execs that it once did either. Digital Audio Workstations (DAWs) can produce quality recordings, social networks allow for cheap marketing, CD pressing isn't required for distribution, and on and on and on.
As "founders", musicians deserve to be rewarded for their work. Not to be screwed over by record labels ("VCs")[2]#.
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# I am in no way suggesting that VCs regularly screw over startup founders