While the internet has proved to be a powerful new way to distribute music, changing how people consume and buy tracks, it is also changing the traditional role of the record label.
The internet has opened up a way for would-be artists and musicians to operate outside the traditional label system. Apart from building up a fan base through touring, artists can now use social networking sites such as MySpace to reach a wide range of potential followers.
There has been huge excitement around the Arctic Monkeys, the Sheffield-based rock band who made their name on the internet, while other bands such as Enter Shikari, another UK rock act, have followed. The explosion of self-publishing by artists and bands has yet to replace the artist and repertoire (A&R function) – the scouting for new talent – at the record labels, but it has shifted the balance of power to the nascent artists, who can point to downloads and popularity on the internet, giving them better royalty deals with the music companies when they eventually get signed.
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