Why Do Musicians Still Need Record Companies?

Truth is, they don't. Which is why record companies are bleeding to death. But....

Record companies still represent the state of the art in record promotion. They generate radio play and overall"buzz" for an emerging artist. They also export hit artists from domestic successes to global markets.

So, musicians don't need record companies (and plenty of acts go straight to iTunes these days) but a record company can still help break a record.

Administrative support is a big reason. I've heard more than a few artists state that managing all the issues involved in accounting, legal, taxes, marketing etc. is considerably more time consuming when you forego the label and take on the direct marketing approach.

I know musicians that can barely drive or do any other type of job. All they do is practice 10hrs per day to bring new repertoire or perfect the existing one.