Record Labels slowly Loosing Grip on Popular Music

For the first time a song has reached the number one position on the United Kingdom Top 40 Chart without actually being produced as a physical object. Crazy by Gnarls Barkley was allowed to be registered as number one after more than 31,000 downloads but only if it was released as a CD available in shops within a week.
Parallel to this was the success of Sandi Thom who webcast herself from the basement of her flat playing her music. After a huge response to her webcasts she has been offered a recording contract with a major label, RCA.
It seems that the major labels are behaving as the little Dutch boy and his dyke. Every time a crack appears they fill it with money. Why is it necessary to have record deal if you can download 31 000 songs in a week and broadcast yourself to the world from the basement of your flat????