Anyone who's an executive at a record label does not understand what the internet is, how it works, how people use it, how fans and consumers interact - no idea. I'm surprised they know how to use email. They have built a business around selling plastic discs, and nobody wants plastic discs any more. They're in such a state of denial it's impossible for them to understand what's happening.
One of the biggest wake-up calls of my career was when I saw a record contract. I said, 'Wait - you sell it for $18.98 and I make 80 cents? And I have to pay you back the money you lent me to make it and then you own it? Who the f**k made that rule? Oh! The record labels made it because artists are dumb and they'll sign anything' - like I did.
While musicians like Reznor and Radiohead have been very successful with self-released and self-promoted albums, it remains to be seen if this model will work as well with less well-known artists.