The music industry has very little to do with music. Music is essentially a commodity, there is a limitless supply of artists/engineers/produces and the labels can manufacture as much as they need. The labels big job is packaging the product.
Labels don't sign bands anymore, they essentially build them (mostly using drama school rejects to front the project) and then creating a "mythology" about the band's origin... This is easy to do since 99% of everyone has been in a band when they were young, and 99.99999% of Drama School kids have!
