Do we need record labels?

News: 3rd February 2012 by Louise Dodgson under Record Labels

Source: http://www.flickr.com/photos/trainor/1229138273/sizes/z/in/photostream/

With the likes of crowd-funding through services such as Pledge Music providing an alternative way for bands and artists to raise money to get their music out to the masses, is there any purpose for the record label? In an age where technology allows artists to connect directly with their fans isn't the record label becoming an unnecessary middle man in the equation?

This article in the Guardian poses these questions and whilst there is an argument for side-stepping a record company these days, there are significant advantages to the security of working with a label. Take a look at the article below and let us know what you think...