THE WEB (Hypebot) – Behind all the talk of the web empowering the artist and small labels, there's a dirty little secret:
independent artists and smaller record labels are being shut out of Music 2.0.
From MySpace to YouTube and Nokia, the major labels are cutting deals with Music 2.0 companies that include advance payments, equity or a share of revenue. The majors may have lost their stranglehold on distribution and the media, but they are using the clout they have left to grab many of the new revenue streams that are replacing the profits lost from sales.
SURVIVING ON LEFTOVERS AGAIN…
But very few deals have been announced with indie labels or revenue offered to D.I.Y. artists. Trade groups like Merlin and A2IM are "in talks", and the net companies say, "Be patient, we'll get to you".
What will be left for indie music once the major labels have grabbed equity positions in some companies and drained other revenue streams dry?
