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I have noticed electronic music fans seems to strongly identify with labels (Armada, Anjunabeats, Bedrock, Spinnin', etc.) They don't necessarily want to pay for songs themselves but they like knowing the music is from a "real" label with a large fanbase.
Also, I have noticed in order to get on the playlists of many of the main DJs (and I think DJ support is the most important thing for an up and coming artist who wants to make a career out of music) you essentially have to be (or have been) on one of a handful of labels.
I think you may as well give the music away though, while having the option for fans to stream and also have songs up on youtube in monetized videos in order to have some revenue. I don't know the figures but just doing some quick math I bet even labels that most people have heard of have releases that could barely buy everyone involved a cup of coffee to celebrate the release based on download sales alone after expenses are paid.
The only issue I see is -if- you ever had a hit like Animals or something similar (which I don't is likely given the genre this label focuses on) you may miss out on some great download sales. However, I would assume any publishing deals with big businesses, where some real money starts coming into play, would still involve working out royalties with the label regardless of whether or not it is a free download for fans on soundcloud.
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Songwriter/artist and reluctant producer.
My Soundcloud
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