Are record labels dead?

This is an interesting artlicle about the music biz and the irrelevancy of record labels to well established stars such as Madonna. Did ya’ll hear about that touring deal she’s been offered? $120 mill is on the table! Can I hold like 5 of that Madge?

http://www.cnn.com/2007/SHOWBIZ/Music/10/12/irrelevantrecordlabels.ap/index.html