What they need to do is market themselves effectively. I've known one band that signed a record deal... but they were already popular in their particular niche. So their record deal has an expiration date on the length of time that the record label owns the copyright (10 years in this case, IIRC). Had they not already had a following, the label would have screwed them into signing over their copyright indefinitely.
You need to work on your following on a small scale, and then let word of mouth, internet marketing, etc scale up your fan-base. The 'hit it big' idea is largely a fantasy. Most bands that sign a record deal to 'make it big' end up failing and then being locked into a contract with the record label for the next X years.
To say that bands need the record labels is a fallacy. Most of the bands that the record labels sign are failures. Record labels take the 'shotgun' approach to finding the 'next big thing.' They are opportunists that prey on people's hopes and dreams of becoming the next huge band. They sweet-talk them into thinking that it's a slam-dunk as soon as they are signed.
The problem with most musicians -- or at least the 'rock' musicians -- is that a lot of them don't do it for the 'love of the music.' They do it because they want to become a large popular rock band so they can party, binge on drugs/alcohol, and get fans/groupies/etc to have lots of backstage sex with. If someone is following this path, and they get screwed by the record companies, I have little sympathy.
My point was that a band will make more money on tour because the record label takes a huge chunk of the albums sale.
The real money is in producing music. :-P
The above must be true because my local radio station 2CR (which we reckon is short for 2 crap records) is still being asked to play "I think i'd better leave right now" by Will Young which is the most hideous song EVER created.
My point is that the industry is not dumber then the comment which appears on any music industry thread on the internet. Copyright is important to them. They have a chance of keeping it from disappearing, or at least slowing down the process.
Go netaudio instead. You get publicity be giving away music and then you get gigs due to people knowing you and listening to your music.
Google makes most of their money from ad sales, but if everyone blocked all ads and only used Google through web scrapers, no one would buy ads from Google. If you rob traffic from Google's page, you are robbing from Google, even if they make no money from their page.