Summary of “The Record Label of The Future is No Label At All”

The company’s recent focus on empowering artists without intermediaries strained its relationship with the major labels as speculation grows over whether their end game is to become a record label.
The average artist signed to a record label only earns 12% of the money generated by their likeness, presenting a unique opportunity for Spotify to influence an artist’s perception of the necessity of a record label as an intermediary.
To remove artist intermediaries, Spotify needs to be able to offer a full stack solution that empowers artists to go direct to streaming while providing them with the infrastructure that they need to record and produce music.
Record labels can approach this with the glass half full by viewing this additional distribution medium as advantageous when shaping their ever evolving artist marketing strategy.
An artist could use Spotify’s studios to record and mix songs and then distribute using Distrokid on all of the major streaming platforms at once.
The artist could then study the data provided by Spotify for Artists to learn more about their listeners and shape a strategy to acquire “1,000” true fans.
As the artist grows in popularity and begins to get courted by record labels, Spotify could remove the financial pressure that faces most artist when choosing to sign to a record label, the cash advance.
By replacing the advance that record labels tempt artists with they could alleviate the financial distress that plagues many artists at the time of negotiations.

The orginal article.