Fat Joe Advocates for Independence in Music, Labels Major Record System as ‘Ponzi Scheme
In a recent appearance at the Wall Street Journal’s The Future of Everything Festival, hip-hop veteran Fat Joe shared his thoughts on the music industry, denouncing the major label system as a “Ponzi scheme” and encouraging artists to pursue independent careers.
The New York City icon discussed his departure from Atlantic Records and decision to establish his own indie label, Terror Squad Productions. Fat Joe expressed skepticism about major labels, citing their “funny math” and lack of transparency.
He questioned the disproportionately low earnings for artists who sell millions of records, using the Fugees as an example. Even megastar Jennifer Lopez, he noted, acknowledged the issue of low compensation and difficulty in recouping expenses.
Fat Joe highlighted the disconnect between label executives and the artists’ passion for their work, explaining that he often had to plead with executives who didn’t fully understand the art and culture to support and promote his records.
Ultimately, Fat Joe realized the potential of being an independent artist and began self-funding his projects. He shared his strategy of touring globally, saving earnings, and then investing in album production and promotion. Despite going independent, Fat Joe emphasized that he maintained the same high-quality look for his work.
