Chapter 1

Music Industry 1.0

Physical distribution required relationships with pressing plants, trucking companies, warehouse networks, and retail chains. Labels spent decades building these networks, creating barriers so high that even wealthy individuals couldn't compete. Getting your record into Tower Records required connections money couldn't buy, connections cemented through decades of mutual dependency between labels and retailers. Radio play determined success, and radio programmers answered to label representatives who arrived bearing promotional budgets, cocaine, and implicit threats. The payola scandals of the 1950s never truly ended, they simply evolved into sophisticated systems of legal bribery.

The mathematics of this system revealed its true brutality. An artist receiving a $50,000 advance would watch $150,000 in recording costs and $500,000 in marketing expenses accumulate against their royalties. After manufacturing, distribution fees, and retail markups, they needed to sell 500,000 albums before seeing a penny beyond their advance. Meanwhile, labels profited from the first unit sold.

Beyond physical control, labels mastered psychological dominance. They cultivated a mythology that creative genius required their validation. Artists internalized this message: without label backing, you were illegitimate. The A&R system functioned as a secular priesthood, anointing the chosen few while maintaining artificial scarcity. For every artist signed, thousands were rejected, not for lack of talent, but to preserve the illusion that label selection indicated divine creative merit.

This system didn't just limit access, it actively destroyed diversity. Unless you lived in Los Angeles, Nashville, London or New York, your music career was essentially impossible. Entire regions and their musical traditions were erased from mainstream consciousness. Only middle-class or wealthy artists could afford to pursue music professionally, systematically excluding working-class voices unless they fit narrow, often exploitative narratives. Labels manufactured similarity through production formulas like the "Motown Sound" or "Nashville Sound," actively discouraging originality unless it could be quickly commodified and replicated.

Yet within this totalitarian system, cracks appeared. Underground tape trading created alternative distribution channels, proving demand existed beyond label-sanctioned releases. Small pressing plants began accepting shorter runs, enabling regional scenes to document themselves. College radio stations created programming gaps where unsigned artists could find audiences, proving that listeners craved diversity labels refused to provide. These networks would later provide the social blueprint for digital disruption.

The independent artist wasn't just "laughable" in this era, they were structurally impossible. But impossibility, when examined closely, revealed itself as a carefully maintained illusion. The seeds of revolution were always there, waiting for technology to provide water and sunlight.