Are Big Music Labels Obsolete?
(Rolling Out) — Island Def Jam/Motown record labels appear to be suffering from the economic downturn. Hip-hop’s most legendary record label laid off 20 employees. The most shocking layoffs were of renowned executives Jonathan McHugh and Chris Hicks. Record labels are going through an adjustment after the industry failed to keep up with technological advances. File sharing and record leaks have put a dent in record sales for the past 10 years. In turn, the average new artist will not receive a multimillion dollar advance and the executives who help to guide the careers of musicians lack the job security of past decades.