If you are interested in understanding how major record labels operate or curious about the business side of it all, Jay Cooper a Los Angeles based music lawyer helps to spell a few things out. The huge divide between small indie labels such as Rusty Knuckles Music and all the majors is based upon many elements, but most of it boils down to money and capital. Think of major labels as simply a bank. They lend out huge sums of money for recording costs, tour promotions, marketing, etc. and then want it all back by owning the music and most profit derived from live shows and merchandise, thus creating a form of indentured servitude. Their hourglass is running short on time and hopefully when companies such as Spotify officially start operating in the US another great music resource will open up allowing for more fans to find the music they enjoy and be a true challenger to Itunes.
Learn more on Spotify and its subscription models for downloading music