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>If they become a label they have to start giving advances to artists

Why?

Logic now costs $200 and a MacBook. I daresay that most musicians pay far more for their instruments than they have to for a production studio.

The idea that you have to invest $$$ to produce an album (hire Timbaland as a producer, spend megabucks on marketing and A&R) is more a byproduct of the blockbuster music market than a logical necessity. If you want to produce a blockbuster, spend blockbuster money, but don't assume that this is the only path to success (success defined as being able to make a living as a musician).



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