I've always been deeply interested in the inner workings of record labels.<p>As I understand it, it seems that a label is somewhat like a VC for artists. But no VC takes 80-90% of the company they invested in. Why do they need to take such a big part? Is pressing CDs such a huge risk and expense? If such; why continue doing it? Barely anyone buys CDs for obvious reasons, shouldn't there at least be an option for artists that don't want to press CDs? Maybe there is but artists just want CDs for some reason?<p>Why can't artists get regular bank-loans to fund their business? Is it just too high risk? It seems that someone as famous as Ok Go should be able to take a bank-loan to fund some studio time, but I suppose they're already under contract.<p>Anyway, if anyone has answers to these questions or links to where I can read more about stuff like this, please do share.