It used to be an artist (of any sort, not just the musician), you would have to impress some very wealthy to-do and get them to sponsor you. You would then spend your time in the employ of this well-to-do by writing music for them.
Then music changed with the rising of the middle class. An artist would write music for the general public and make a living by creating more and more for the masses to enjoy. Even artists not popular with the main-stream could find a loyal niche.
However, there had to be a way to distribute the music to the masses. This is where the production company came in. An artist would prove that they had music that at least some of the masses would enjoy and then the production company would record and publish their music. The music (or artist) would be marketed, and the masses would buy the published music, and the artist and production company would split the earnings.
Then the internet appeared. With the ease of digital music, people can copy music from a friend without paying a penny, not even for a tape or CD to put it on. This is considered stealing from the production company, and they are none-too-happy about that.
However, what if we went back to the “olden ways” of producing music: Sponsors? Say Coca-cola sponsored Lady Ga-Ga. Lady Ga-Ga would get paid to make music, get paid to do concerts and end up just as rich and famous. However, Coke would give away her music for free, and earn every Lady Ga-Ga fan as a loyal customer.
Production companies wouldn’t like this, but it’s time they left anyways. That’s the way of capitalism. In the end customers would be happy, artists would be happy and sponsors would have a new, powerful means of advertising.