A record label is probably much more of a VC than it is an employer. The business has changed since streaming and self publishing but the labels took bets on a

A record label is probably much more of a VC than it is an employer. The business has changed since streaming and self publishing but the labels took bets on artists and gave them expensive recording studios and marketing dollars, gave them some basic money, and in return took the majority of rights to the first few albums. They also knew that if the artist truly made it big they would likely go to a different label where they could get better terms or start their own where they’d keep all the money after the initial contract which drove their side higher. The record label model clearly doesn’t work as well in modern days but it was successful for good reasons at the time it really flourished.