That's the same as startup getting investment because they have "traction", and most won't if they don't. And the benefit of having a label is that, while you don't need one to tour and focus on new media, it sure as hell helps to have professional help from people who have done this countless times. There are thousands of independent labels. Some will do nothing for you. Those that do their job can do things that a fraction of 1% of artists can do on their own. Nobody should sit around waiting for a label, but nobody who knows what a good label can do would say they're not extremely valuable and worth signing over some of your "equity" to.
This is all true, and it's important to distinguish between "The Industry" and the good indie labels. Bella Union is one I have first-hand knowledge of and they are incredibly fair, and involved in the artists' tours and PR to a large degree.
If you know that's the kind of label you're looking at signing with, great! But the idea that labels are gatekeepers to distribution and royalties is a thing of the past.
Labels work best now when they act more like YC and less like RCA.
