This is very interesting reading about the bloated music industry, written by Peter Tschmuck (link paper - pdf):
"This paper analyses the music majors� claim for creativity by providing a tentative definition of the term �creativity� derived from economic, psychological, and sociological findings about the creative environment. Further, by utilizing a descriptive-empirical analysis, the processes and structures of the music industry are examined in detail in order to investigate whether the music industry�s highly integrated oligopolistic market structures provide a fertile ground for creativity and innovation. Based on empirical results, finally, this paper argues that the music industry�s current oligopolistic structures do indeed not foster creativity but, in contrast, restrain and even strangle the creative processes of artists."
4 years later the author Peter Tschmuck wrote about this issue in his academic doctorate, called "Creativity and innovation in the music industry".