As someone who has been connected to hip-hop and rap music for 22 years, I've seen how difficult it has become for the majority of artists, songwriters, producers and independent labels to get their music to the fans directly, without signing with a major label and subjecting themselves to rules that are in the best interest of the label. Beginning in the late 1980's when video hit the scene, record companies upped the ante on what it took to promote and market a song, totally squeezing the small, independent entrepreneur out of the distribution game. Now, with most radio stations playing popular favorites and with the high cost of making and distributing music videos, it is almost impossible for an independent record producer or an artist to get music to fans. I believe this structure has hurt the artist more than someone passing a song around free of charge. Not that most artists ever have much say about how their work is marketed and sold anyhow.
Most contracts only guarantee artists a few cents in royalties from each record sold.
And if a song doesn't become a hit, the label can cease selling it but still own rights to it forever. The major labels have also benefited from being a step ahead on the technology that allows the listener to hear and keep music. And in fact, when companies like Sony bought record companies, they gained control of not only the music but also the device needed to hear it. The last straw was the CD period, when labels increased their markup without raising artists' royalties in kind. They have been able to fatten profits by flipping small batches of artists in and out.