How Big Companies *Kill the Competition* & Control the Music Game - podcast episode cover

How Big Companies *Kill the Competition* & Control the Music Game

Jul 16, 20259 min
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Episode description

In this insightful clip from EYL, host Rashad Bilal sits down with music industry legend David Banner to break down how big corporations take over independent brands and reshape entire industries—including hip hop and music. Banner and Rashad dive deep into the legendary Beats by Dre/Apple acquisition and uncover how companies often "buy to shelf"—buying a successful brand only to suppress it and eliminate competition.


David Banner shares game-changing stories from his own journey, revealing how major labels and corporations systematically absorbed independent artists, distributors, and even mom-and-pop record stores to achieve near-total control. Banner reflects on how independent success used to be possible through solid distribution and creativity, but the system changed dramatically when large entities started buying out every level of the music business.


This discussion goes further, exploring how the transition to streaming has impacted artists' earnings—comparing the $10 per album model to today's "fractions of a penny" per stream. Banner calls out the psychological tactics used by major labels, echoing Swizz Beatz’s insight from Harvard: giving artists the illusion of ownership (like offering their own sub-labels), while the real power and profits remain with the parent company.


The clip is packed with hard-hitting truths on:

  • The real effects of corporate buyouts in both tech and music
  • How independent artists and distribution channels were targeted and taken out
  • Why streaming hasn’t truly benefited artists, and how the business side keeps creatives dependent
  • The psychology behind labels granting fake "ownership" to keep artists satisfied
  • Lessons from industry icons like Snoop Dogg and Slim Thug on regrets and the best routes for longevity


If you care about music, business, or want to understand the machinery behind the scenes, you don’t want to miss this one. Banner’s raw honesty and Rashad’s sharp questions make this a must-watch for anyone trying to navigate business or creative industries in the age of big money.


*Watch, learn, and join the conversation—drop your thoughts below!*


#EYL #DavidBanner #MusicBusiness #BeatsByDre #Apple #HipHop #Streaming #IndependentArtists #BusinessGame #Ownership #CorporateTakeover #EYLClip #Entrepreneurship



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Transcript

Speaker 1

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Speaker 2

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Speaker 3

Let me ask you this. On the independence side, Snoop.

Speaker 4

I only met Snoop one time and it was crazy because he gave a lot of game just in a very short period of time. One of the things that he said was extremely insightful. He was saying that we're talking about Beats BA Dre and you know everybody know that. I think Apple bort it for eight hundred million dollars something like that, And he was like, sometimes they'll buy you to shelf you, yeah, meaning like Beasts by Dre was lit. They had everybody they had all the rappers,

they had athletes there. You don't really see too much about Beat by Dre now, so his Apple Apple, Apple bought them, so he's his thing was like, as soon as Apple buys Beats ba Dre, all you hear is the iPod, the AirPods. So they essentially brought the competition to kill the competition so they could push their products, which is AirPods as opposed to Beats by Dre.

Speaker 3

What have you heard that before?

Speaker 4

Though, Well, that's why I'm tied in with the music because like slim Thug is my guy, Like that's a personal friend of Buston. And he was saying like how he kind of regretted going to a label because it's like the label, the allure of a label, like I got a d I got my own label under a label. But he was like, looking back on it, it was better to just stay the independent route.

Speaker 3

You think that that the music business has done that?

Speaker 5

Like, of course that's what I was alluding to earlier. I even take it a step further. Okay, then all right, see y'all starting with I'm trying to stay on business.

Speaker 1

All right, So peep this, watch this, watch this.

Speaker 5

Gonna blow your mind. It's funny because I saw part of it here. What was the big the Virgin megastore. That was when I knew they won. Watched this, so they sucked up all of the independent artists. First, gave us more money than we ever seen before. But what that is to them is a tax right off, right, because they make sure in most cases that we fail. And then the other rappers who were like me, unlike

you know what I'm saying. If if if let's say Manny Fresh decided that he wanted to leave, right, I don't.

Speaker 1

Have that problem because I produce.

Speaker 5

Also, if Baby decided to leave, then they don't have to worry about that because I run my business. I understand my business. If Wayne decided to leave, whether they rapper left or Julie decided to leave, a BG decided to.

Speaker 1

Leave, well I do the rappers. I do the rapping.

Speaker 5

So what ended up happening is is after they soaked, they gave all this money and we thought we had all of this money. And then the first thing that you all know, I didn't understand is what forty forty five percent of it is gone just in taxi right, then you're catching up for all of the borrowing that you did and not having or getting your first house and car, getting your mom straight what see.

Speaker 1

Long Green said that money be gone. So they did that.

Speaker 2

That was easy.

Speaker 1

Didn't watch what they did.

Speaker 5

I myself got a seventy thousand dollars check from Southwest Distribution. We didn't need the majors we had and Zalees we had Southwestern. We had distribution companies, real solid distribution companies. They soaked them up and bought them out. Then guess what they did. Black people learn how to get mom and pop stores, even though a lot of them was burning CDs in the back in bootlegging. But that was we even learned how to We actually learned how to press CDs the fact.

Speaker 1

Then they sucked up the mom and pop stores.

Speaker 5

I don't know if you'll remember when they would put the Feds started going to the mom and pop stores like they were really like they were selling drugs. Bro Right, So then they sucked up the mom and pop stores. Then after they sucked up the mom and pop stores, then they went for the major stores.

Speaker 1

Bro. We at Virgin all we got to doing, say the Virgin.

Speaker 5

Mega store bro literally, and I know I know Jordan, but I gotta say it, bro, Like the Virgin Mega Store was one of the few times besides walking into a strip club, where I think I slightly had.

Speaker 1

An orgasm when I would walking to the store.

Speaker 5

I mean just being a I mean just being a b one thing that people don't understand about me.

Speaker 1

Bro, is I really loved hip hop. I really loved it. I really thought it was this real thing. Bro.

Speaker 5

I right, like, Bro, and I peak what they did to the game, Bro, and then we were okay with streaming after that.

Speaker 1

Bro. Like we it's just like, Bro, we are addicted to.

Speaker 5

Following our pressors, no matter how they treat us, no matter how bad they do us, we run behind them.

Speaker 1

Bro. I just left Forbes, and.

Speaker 5

What I was telling them over there at Forbes was like, one of the sad things is that we get caught in the trends, no matter how detrimental those trends may beat us. Like I told them, there's nothing from a business standpoint that you.

Speaker 1

Can tell me that was positive about streaming.

Speaker 5

And you all are owned your business acumen, bro, At least.

Speaker 1

At y'all age. Bro, I don't know too many people.

Speaker 5

Y'all ages beat y'all on that side, tell me one positive thing about streaming you were getting. I just told you I was getting ten dollars a CD, two fractions of pennies to just allow somebody to play my music over and over again on their site.

Speaker 1

That's all streaming is.

Speaker 5

They just play up, perpetually play your shit over and over again, and then people tap into their site.

Speaker 1

What's smart about that?

Speaker 3

It's just psychological.

Speaker 4

Even Swiss Swiss Beat had said something that was insightful off so with you know, he went to Harvard like that program that they have, and he was like, one thing that he picked up is that in business, you don't have to give somebody ownership, but you just make them feel like they have ownership in their work.

Speaker 3

So he equated that to labels.

Speaker 4

He's like, so when they started giving everybody a label, they felt empowered because now you're under a powered structure that you psychologically want to be under anyway, and they make you're still a worker, but you have a title of a CEO. So now all everybody got a label, but nobody has distribution, nobody has real ownership.

Speaker 3

But that's a way to keep everybody happy and satisfied.

Speaker 6

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Speaker 3

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