I might have been on to something with my thought that the recent RIAA p2p victory would be seen as pyrrhic. Techdirt notes that a small, but growing group of artists are starting to figure out that the "value add" of the music labels isn't such a great deal:

There are two key things to note in all of this. First, all these bands feel the need to ditch big record labels to do this (and, no, that doesn't mean that small bands without recording contracts can't succeed this way too). This is a sad state of affairs for the record labels -- because there still should be a place for them in helping to promote and market a band, even if they're giving away the music for free. It's just that they're not venture capitalists any more and bands don't need help in distributing content -- two businesses the record labels insist they're in.

I think this only fuels the desperation and stupidity on the part of the labels. You've got a whole ton of useless middle-men who are accustomed to a comfortable existence - and digital distribution has come in like a sledgehammer. They no longer control the horizontal, the vertical, or anything at all. Bands can promote their music in a variety of online forums, and not sell their souls for a few pennies of royalties.

Sure - most bands will have to rely on touring to make most of their money, but that's no different than it is now. The real difference is that the incremental revenue they do get from online sales of mp3 and CDs will go in their pockets instead of someone else's.

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