This was a starting point of development of recording techniques and record studios, at that time making recorded music available to masses required a significant capital and investments, which in turn required a legal structure that would provide stable profits and return on the required investment.
Music industry used to provide people with tools that were essential to listen to recorder music and the difference between that time and our days is that record companies charge people for permission to use tools people already have that they did not provide, that in fact people paid someone else for, yet the legal structure that developed during the time when that services were useful remains.
The Internet and World Wide Web have changed the character of music distribution with laptops and desktop PCs loaded with hardware and software necessary for high-quality sound recording.
All the hardware and software applications are available for the average class people not mentioning internet piracy and “cracked” software that is available to download using peer-to-peer applications.
This particular diagram is a good example of old model of music production chain, In our days there is no need of Publisher, Distributors and in most cases manufacturers, modern technology allows to burn CDs at home publish own records using internet distributing the material across the World Wide Web physically and digitally.
In old days, musician had to pay to almost every person in Music Production chain to record, studios, engineers, managers, labels, publishers, legal departments, distribution networks etc.
According to Forbes website ( about 240.000 users has been downloading album using Peer-to peer (Bit Torrent) sources “according to Big Champagne, a Los-Angeles-based company that tracks illegal downloading on the Internet.
Over the following days, the file was downloaded about 100,000 more times each day—adding up to more than 500,000 total illegal downloads.”“The recorded music industry …
Most “independent” labels are owned by a corporate label.
Each “major” is in turn owned by an even bigger corporation, and so on up the food chain.