"The problem with music" by: Steve Albini

Probably the greatest screed against major labels ever written.

That is a pretty good article and well written. I am no fan of major labels and I can only imagine that there are/were plenty of horror stories regarding mistreated bands. That being said, I am not sure that the economics as presented is entirely fair. There is nothing in there for marketing, general overhead (including A&R guys), and especially failed bands. For every one that makes money for the label there are certainly many more that lose money. There is no way to know that going in to a contract. They lose money on the failed records, but more than likely every one that is successful brings out the "hey, you are ripping us off" response."

Again, I think major labels are for the most part gross sausage makers, but they failed all the time. The economics weren't that great.