So why don't they?
http://bandcamp.com http://soundcloud.com http://myspace.com http://cdbaby.com
All services that an artist can use to distribute music yet musicians still choose to sign with labels to this day. Maybe, just maybe labels provide value to artists beyond what you can comprehend?
Would Justin Bieber be worth over $100,000,000 if he had released his music on Bandcamp? Would Lady Gaga be worth $150,000,000 if she had released her music on Myspace? Do you think Lady Gaga and Justin Bieber want people to pirate their music and care only about people hearing their music? If that was the case why don't they release it for free?
Radiohead released an album independently in... 2005? That was a success, if artists only cared about making music and didn't care about making money why hasn't every artist since released independently?
Why can't people that create content be a business? Surely that is the entrepreneurial spirit everyone here is supposed to have... and if so, why can't they be against people that engage in media piracy?