Record Labels Dig Their Own Grave. And the Shovel is Called TikTok.

Streaming has changed all the rules. Musicians can upload songs on to a streaming platform without a label. If they still want to sell physical albums, Bandcamp has made it very easy—no label required. They can deal directly with fans, journalists, promoters, booking agents, etc. without a label. They can set up a publishing company with almost no ... See more

Let’s cut to the chase. If this TikTok-ification of the music biz continues, what will be the end result? Here it is, in a single sentence: Only unsuccessful musicians still need a label. Think over the deep implications of that fact.

Record labels are digging their own grave. They finally have achieved their dream—which is to make money while doing as little work as possible. But the end result is a world in which they add so little value that no successful musician will want them any longer.

This is the publishing paradox nowadays: opportunities come to you in direct proportion to your ability to operate without them.

The first TikTok stars were slow to realize how much negotiating power they actually possessed—they’re just youngsters, after all. So they got dazzled by the promise of a big upfront payment from a label. But in the last few months, many have started to figure out that the so-called ‘advance against future royalties’ is actually just a loan under a... See more