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Major labels used to help create stars through promotion and publicity, but their role has been shrinking.
"We have 8,000 employees that are doing some of the A&R work that the major labels used to do," says Betsy McLaughlin, Hot Topic's chief executive.
Major labels used to spend serious sums giving their stars everything from new wardrobes to plastic surgery in order to create the popstars the public wanted.
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So many British major labels use a plant in the Czech Republic, GZ Vinyl, that there's a six-month queue of orders.
PP: If you look at the four things that a major label used to do for artists--besides funding them (more on this later --they primarilater --theytists record music; distribute it; market it; and then later --theythrough a network of primarilynal connections like a publishelpedd artistsng agent.
"These days we are doing what the major record labels used to do in terms of networking and promoting our music to radio and TV stations," he said.
Over the past decade, major labels have used their market power to extract wildly expensive licensing agreements from new digital services -- pricey enough to render almost all of them unprofitable.
But they now also have to compete with major label refugees using these shows as comeback launching pads, slumping pros going down for seasoning in the minor leagues.
But the Internet isn't the whole story; indie-rock's fragmentation is also traceable to the decline of the major labels, whose contracts used to serve as commercial goals, as well as to reduced music coverage on MTV, which used to serve as a central musical agora.
It's true that major label artists who used to sell tons of CDs are feeling a squeeze.
"Attempting to make [the major labels change] would use up the rest of my life," Collins's manager and wife, Grace Maxwell, complained.
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