The music industry is evolving, and in 2025, artists are beginning to wonder, “are the big traditional major label system still helpful for me?”
With the rise of independent artists, new technologies, and changing consumer behavior, many are beginning to ask whether the major labels are really helping artists as much as they should.
Let’s look at why major labels are failing artists, and what’s happening in the industry.
The Decline of Major Record Labels: What Went Wrong?
It’s no secret that major labels have run the music industry for decades. They have been the gate way to fame and fortune, but over the last few years, their power has started to wane. Streaming platforms and social media have enabled artists to go directly to their fans, rendering traditional label structure unnecessary in most cases.
Although major labels still control a large part of the industry, they are not as useful as they used to be, and their ability to provide the kind of support they did in the past has diminished greatly. With more artists moving into the smaller labels and indie category, the role of major labels is being questioned.
Artist Exploitation: The Dark Side of Major Labels
One of the biggest reasons major labels are failing artists is their history of taking advantage of musicians. Major labels have promised artists support, exposure, and financial help, but many artists are stuck in deals that benefit the label, not the artist.
The fact is that major labels have been known to take as much as 80% of an artist’s revenue and leave the artist with almost nothing. Additionally, the pressure to produce hit songs at a fast rate can stifle an artist’s creativity, leading to poor quality work that can harm an artist’s long-term success.
The Financial Pitfall: Low Royalties and High Advances
Many artists sign with major labels thinking they will get advance money and continued earnings. However, these advances are typically recouped from album sales and tours, leaving the artist pretty much broke once everything is paid off. Furthermore, royalty rates are generally low; thus, even when an artist is a huge success, they do not earn much.
With streaming services like Spotify, artists earn mere fractions of a penny per stream. These deals are controlled by major labels, and artists are left with little or no chance of earning a decent income. With the rise of independent platforms, musicians realize they can avoid the financial pitfalls of major labels.
Lack of Creative Freedom: How Major Labels Stifle Artists
This is probably the most annoying part of dealing with major labels: the lack of artistic control. In the pursuit of commercial success, many major labels force artists to create music that fits the mainstream, often at the expense of the artist’s personal vision.
While indie artists have the liberty to experiment with new sounds, styles, and messages, they don’t have to conform to a specific formula. In 2025, more and more artists realize that their creative control is worth more than any advance or promotion major labels are offering.
The Shift to Independent Music: Why Artists Are Leaving Major Labels
The growing number of independent artists is a direct result of the failure of major labels to adapt to the changing music industry. Thanks to platforms like Bandcamp, SoundCloud and Patreon, artists can now create and promote their music without the help of a major label. The democratization of music distribution has enabled artists to take control of their careers.
Also, independent artists are able to connect with their fans directly through social media and don’t have to go through the traditional label gatekeepers. As more artists choose independence, major labels struggle to stay relevant in a world where authenticity and direct fan engagement matter most.
Why Major Labels Can’t Keep Up with Changing Consumer Habits?
Music listening habits have changed a lot in the last decade, and the major labels have not kept up. Streaming services have revolutionized the way people consume music, and today, people want to access artists directly. Social media, TikTok, and YouTube have become crucial tools for indie artists to engage with the audience, build up a following and share their music without the need for traditional labels.
Major labels however are still stuck on the old ways of doing business i.e. promoting albums, getting airplay on the radio and managing artists in a way that is not appealing to the current music fan. Therefore, the label system is seen as outdated by the artists and the audience.
The other reason is the shift to fan-driven music careers, on which major labels are failing artists in 2025. Indie artists are finding success through engaging with their audience in a personal and authentic way.
It doesn’t matter if it’s behind the scenes content, exclusive merch, or actually taking the time to talk to their fans, indie musicians are building a relationship with the audience that’s just not possible with a major label.
Using tools like Patreon, merchandise sales and live streams, the indie artists are able to earn a living and at the same time maintain their artistic integrity. This model is resonating more than ever in a world where fans want to feel a personal connection to the music they are listening to.
Can Major Labels Adapt or Will They Fade Away?
Major labels have been around for a long time and are still influential in 2025. The question remains: Can they adapt to the changing music landscape, or are they doomed to fade away as artists continue to embrace independence?
The answer lies in their willingness to change. If major labels want to remain relevant, they must rethink their contracts, prioritize artist well-being, and find new ways to support creative freedom. Until then, the future of the music industry may very well be indie.
In conclusion, major labels in 2025 are failing to meet the needs and demands of the artists of the present day. Although they still have a lot of influence, their model is outdated and they do not support creativity, transparency regarding money and artist independence.
More artists are turning to independent paths, and the future of the industry may be increasingly DIY—and that might just be good for artists who are finally taking control of their own careers.