The man who discovered Oasis and formed the Pop Tones label in 1999 wants out.  He doesn't see the point of owning a label because there's no money to be made since the cost of promoting a band via conventional means is too high. I agree. Big label band promotion often resembles a shotgun being sprayed at a crowd and hoping that something will stick. Viral marketing via social networks is nothing new; just look at the success stories on Myspace. However, complete ownership of large scale promotion & production to by a band themselves hasn't been done yet. I'm not talking about established mega-bands here like U2, but unknown acts, who get a following and then take it to the next level themselves. All bands that get to this stage, end up signing a deal.  

Is it possible in the future? I think so but the social networks needs to become a lot larger and the features on these sites that promote viral sharing need to be a lot more efficient. What do I mean with efficiency? Discoverability. Most social networking sites still make it too difficult for you to find new music that you might like.  

The internet will become the main distribution channel in 10 years time, therefore lowering the cost of distribution to potentially a negligible amount, another prerequisite.

So what's the secret sauce for 'Band 2.0' ?

1. Launch video on Youtube, Xbox Live (theoretical), Apple TV (theoretical), Joost (theoretical)

2. Work with Last.fm or myspace for gig dates, recommendation engines and fan cultivation

3. Sell album on iTunes (no label)

4. A good tune :)

5. A good stunt

6. Hire friends with business skills.