What is the purpose of labels in the music industry and why do they hold so much power as well making more money than the artists signed?
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Labels do all the legwork to get music out to consumers:
* They scout new talent.
* They link promising musicians up with songwriters and producers.
* They provide cash advances so new artists can afford to book studio time.
* They negotiate distribution deals to get music on the radio and into (real/digital) stores.
Labels are essentially the bridge between you playing local clubs and having a cool mixtape and you becoming a nationally known artist.
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