Ted Mico, the head of digital strategy at Interscope, defended the majors by saying that "anyone who has spent an hour or a day listening to demos understands the labels' place in the food chain"; that is, labels provide both filtering and then marketing of music. Without their help, promising artists would be lost in a sea of noise and would be almost impossible for music lovers to discover.

This attitude was deconstructed during the very next panel, where the CEO of social music recommendation site iLike pointed out that labels, in fact, don't actually need to spend their time listening to demos; customers have already done it for them. Social networking sites like MySpace show that it works. Do music labels still need expensive A&R staff when they can simply listen to works of any band with over 50,000 MySpace friends? The message, in other words, was "Music 2.0, welcome to Web 2.0."