This get's to the real reason the RIAA hates the piracy. Once someone is internet famous they don't need promoters to start making good money. When someones is actually good they can keep making good money just from word of mouth. Because when you get down to it Advertising is the only thing recording labels bring to the equation now days.
That's not to say people won't sign on. Just that once your making good money your less interested in signing a deal that gives 90% of the profits to a record company. And that power imbalance is why record company's can be so profitable in the first place.
That's not to say people won't sign on. Just that once your making good money your less interested in signing a deal that gives 90% of the profits to a record company. And that power imbalance is why record company's can be so profitable in the first place.