Why labels and radio companies have created iTunes and digital music distribution.

I came across this video shedding a little insight into why the label companies are suffering so much. I am not into bashing big business like they do, but I once did a lot of research into signing with label companies and much of what they say is true. They front you money and if you don't sell enough albums to recoup that money, you have to record more music to pay it back. Unfortunately, this new record comes with another front of money which has to be paid back. This doesn't mean it's the only way to do it, but it is the most common. Also, I believe that this is why newspapers are going out of business. They aren't adapting to what consumers want and are paying the price.

Caution: The F-bomb is dropped once.