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Why do we need record labels?

GarageBand.com CEO says 150,000 artists have put their songs up on the site.  Their songs are ranked by fellow musicians. With podcasting, GarageBand.com hopes the independent songs that many of his users are creating will hit the consumer market.  If the cost of producing and distributing music has declined dramatically, why does anyone need a record label? Ali says budding musicians still need record labels to promote the best artists. 

Watch my interview with Partovi

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