Other point I saw recently here at HN is that the recording companies get the lions share of the revenue that comes from recording because investing in a up and

Other point I saw recently here at HN is that the recording companies get the lions share of the revenue that comes from recording because investing in a up and coming artist has a high risk, therefore must bring high profits to be a viable business model. Those business who don't milk the successful artists don't have money to take a chance with the up and coming artists while rewarding the investors at a competitive rate, which means they don't get investors for future growth. Other sources of money for a business include it's own money (which we established such a business wouldn't have) and loan (which require the business to have a higher return rate than the loan's interest).