@Robert E A Harvey
The "record labels" still perform a function which is to fund music. As someone "at the coalface" so to speak, I have limited resources to push my music though a plethora of opportunities. I can put it on myspace along with a million other songs, put it on youtube along with a million other songs, put it on whichever website is the "next big thing" along with a million other artists all scrambling to become the next big thing which most of us won't. I can enter a million competitions where I will be up against the next Arctic Monkeys, a woman who's old enough to know better singing middle of the road "funky pop" in front of a band of bored looking function band musicians and a band that sound kind of like a cross between Radiohead, U2 and Coldplay. We won't win because we sound kind of like a cross between The Band, Ryan Adams and Neil Young.
I can get gigs but only the small ones because, even with a fanbase, no-one's heard of me. I can pay for my own recording but it won't sound as good as something done by a professional producer. I can release it myself but unless I pay for PR it won't get reviewed, I can send it to radio stations but unless I pay for expensive PR it won't get played, I can even send it in to tv stations but unless I spend tens of thousands on PR it will be ignored.
Certainly with this level of exposure I'm unlikely to get a support slot on a tour which would expose the music to a whole new fanbase, I'm unlikely to get reviewed in a decent music magazine and I'm unlikely to make it in the music industry. Unfortunately in your suggestion, the record labels disappear - those would be the guys with the money to invest in a band that they might see has some potential.
I wouldn't even bother writing all this if I didn't think our music was good. I've been a musiciain for 25 years and in my humble opinion am lucky enough to be working with one of the best songwriters I have ever met. He's really good. He runs his own commercial music company and did the music on the malteser ad (with the girls driving round the roundabout) and the Wales tourist board ad (with the welsh mud on the bikes) and the playstation ads with the midgets playing basketball. The music we're playing isn't fashionable but is sellable but probably not in the UK (where we are allergic to folk and country influenced music) and we would probably need a label to get behind us. Don't forget that a lot of the so-called DIY artists today who made it "online" and "without a record company" did no such thing - many of them WERE funded, just not overtly.
For reference we are here: http://www.reverbnation.com/jawbone - your opinion is always welcome. Smiley. Why not?