A historical theme with musicians is that if they are not well managed, they end up not making anywhere near enough money for their music as they should. New artists see stars when offered a deal by a label, sign without fully understanding it, and before they know it, they’re mired with obligations to record a certain number of albums in a certain number of years. In 2008, Jared Leto’s band, Thirty Seconds to Mars, was involved in a terribly ugly litigation with Virgin/EMI Records over a breach of contract. His band was sued for $30 million they simply didn’t have (There is a great documentary on this, “Artifact”, a very good watch).
Some see streaming and its popularity as a great equalizer to artists- everyone has access to the service, so everyone has equal chance of being heard. This is not necessarily the case, as big labels have a major advantage over indie artists: money. Companies like Warner Brothers Music and EMI treat music like a series of investments. Put money into an artist to shoot a music video, gain money by taking the lion’s share of ad revenue and streaming and purchase royalties.
The simple solution would be something of a musician’s union- you pay in to a fund to provide good legal counseling to up-and-coming artists who don’t understand the business side of things in the music industry. New advances and platforms for reaching listeners create just as many opportunities to be taken advantage of by a label, so having legal firepower behind the artists is incredibly important in this day and age.
Brendan's Music Blog 