system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What is the purpose of labels in the music industry and why do they hold so much power as well making more money than the artists signed?
gpt
Labels do all the legwork to get music out to consumers:

* They scout new talent.

* They link promising musicians up with songwriters and producers.

* They provide cash advances so new artists can afford to book studio time.

* They negotiate distribution deals to get music on the radio and into (real/digital) stores.

Labels are essentially the bridge between you playing local clubs and having a cool mixtape and you becoming a nationally known artist.