When tens of millions of songs are available in your PC or laptop, what use can record labels possibly have, except to obstruct something? Clearly, they are obsolete.
Record labels are also responsible for World Tours, stage productions, promotion, and the majority of the negotations when it comes to these kinds of things.
I hate major labels as much as the next guy, but their representatives do hold the keys to some pretty big doors. In my experiences, unless you were a MASSIVELY successful band, you probably couldnt get yourself into some markets of the world without help from said labels or individuals.