99% of any successful music artist is marketing. Getting people to hear and listen to an artist's music is the extremely hard part of it. Why would anyone need a music label when they can release everything on Youtube or Tiktok by themselves?
Releasing music onto YouTube or Tiktok is not marketing - it's distribution. Distribution is trivial, it's a commodity service. Because anyone can distribute music, there's lots of it. Getting much heard requires specialist expertise - and that's why there's probably more value in good labels today than there was ten years ago.
And how would they differentiate themselves from the fifty million other people who are doing the same thing on YouTube?
Labels have historically provided assistance with recording and marketing, in exchange for the lion's share of the bounty. Recording may have gotten easier, but the gap between the skills of a musician, and a marketer is still here.
I'm not saying the economics of the past were great, but the economics of the present aren't, either.