I must admit that my last column concerning Napster was a superficial look at a complicated issue. One e-mail politely called me everything I called Lars Ulirch — and I probably deserved it — and illustrated the download issue must be worked out since computers will continue to play a larger role in receiving entertainment. Print-on-demand books are popping up; computer books swear they will replace the real thing; CD burners are everywhere, and if Napster or MP3 doesn’t survive, someone else will come up with a better system. And what will happen when technology allows for people to make full-length movies and broadcast them Internet only?

All the above instances point to more freedom for the little guy (if customers can find them) and less control for corporations who gives a rat’s ass about a quality product as long as the dollars keep rolling in and cross-marketing promotions keeps growing. However, the more subtle issue is entertainment conglomerates continued poisoning of the quality of entertainment by striving to make every new band, movie or book the biggest and best ever.

In the music world, record labels used to nurture and grow young artists. They could afford to take many chances knowing that some would pay off, and they could rely on a stable of developed artists to keep the label swimming in cash. That was the norm and from the 1960s through the 1980s, and this system allowed unknown musicians to gain followings and respectable record sales. And every once in a while, one of these bands would break out and make it huge. Ever heard of The Police?

However, merger mania has lead to an explosion of singles-based performers who will generate millions of dollars for the labels while getting spit up and chewed out in a matter of months. (If you think VH-1’s "Where Are They Now" is a hoot in 2000, just wait until 2010 when Vanilla Ice will come off as a visionary compared to today’s artists.)

But what is happening to the thousands of bands dropped by major labels? And what happens to up and coming bands that don’t fit into standard radio format or music company trend charts? Luckily, many are taking matters into their own hands using technology to their advantage. This is what the record companies should fear.

So who is out there giving the finger to the music industry?

How about the Homegrown Music Network? A consort of freaks, hippies, and misfits (homegrownmusic.net), Homegrown has grown as the home of jam bands battling to fill the Grateful Dead’s shoes. But the musical offerings hardly stop there. You can find jazz, reggae, country, world beat, percussion bands, and just about anything else imaginable.

The most noticeable established artist avoiding major labels is Ani DiFranco. Now, granted, she was never on a major label and she doesn’t even have a website for her label, Righteous Babe Records, but she makes more money per record sold than U2; and she runs a small little music empire out of her hometown of Buffalo, New York.

There are hundreds of established acts that have made the jump to Internet-direct sales. Three recent additions to the foray are Freedy Johnston (freedyjohnston.com), Jonatha Brooke (jonathabrooke.com) and Aimee Mann (aimeemann.com). Johnston is one of the most important singer-songwriters of the past ten years, yet his run-ins with record companies expecting "product" faster are legendary. So after completing his third Elektra record, Johnston started his website, released a live CD, and plans to hit the road for a while. Brooke had a nightmarish major label marriage after building a large following on the strength of her band, The Story, so she struck out with her own live release. And Mann might be the poster child of bad luck in the music industry. After making it big with ’Til Tuesday, she put out her first solo record, Whatever, only to see her record label fold a week later. A similar fate happened to her second record, I’m With Stupid, when her label was bought weeks after release, and her third solo release was tied up in "we don’t hear a single" limbo until Mann bought the rights back and released the records through her own website. Then luck struck when the soundtrack to Magnolia, which features seven Mann originals, was nominated for a Grammy. A national distributor immediately scooped up Bachelor No. 2 and it is now available anywhere.

So what do labels have to fear the most? All their mid-list artists are taking away their fans and selling records themselves. These artists are making a minimum of $7 a CD sold. It doesn’t take a rocket scientist to figure out that selling 5,000 to 10,000 copies will satisfy these musicians — especially when they were making less then $1 for every record sold through a major label.

I wonder how long it will take for the major labels to figure this one out. When they do, Napster will look like a tiny bump in the road.