Excuse me for being blunt but this is way too simplistic and the world does not work like that. Artists (= suppliers in over-crowded markets) don't just "get discovered". An artist has a job, and that job is definitely not marketing, sales, public relations, or really anything other than doing their thing.
If artists were left to their own devices they would happily rot in their basements, attics and/or garden sheds and die in anonymity. The (potential) audience needs some way to actually discover said artist _before_ they can even form an opinion on likes/dislikes. And, the market is over-saturated with extremely good artists, globally. Hundreds of thousands, if not millions, of artists. Only, 99.999% plus is not known by anyone except perhaps their near social circle and/or relatives.
An artist without an agent or an agency* (proper marketing and networking etc) is just a random person with a creative hobby.
> In music, commercial success, more than any other factor, comes from making music that is liked by large numbers of people.
Most bands never have a chance to see if their music is liked by a large number of people because they don't have that kind of distribution. Through the 20th century the labels created a distribution network into which they pump hand selected artists (that match their marketing channels demographics). They, like you say, have roughly a 1 in 10 chance of success with this model (like vcs). Most bands will never know if their music will be popular because the won't get signed to find out.
Well see the thing is that all music that is liked by large numbers of people is also liked by small numbers of people. If you get my drift.
Most bands never get signed because nobody likes them. They play a gig to fifty people in March and when they play the same place in June twenty people show up. By fall it's just girlfriends and siblings and by the following year they're working as a roofer or something.
Artists make demos of their music and send them to people and those people don't like them, and don't play them over and over and don't share them with friends, and it never reaches the ears of people with influence because nobody cares, because it has no real connection or mass appeal.
Conversely, artists that do have mass appeal get attention very very quickly. I've been around awhile, I started working professionaly in the music business in the late 1980's. So much has changed, back then it was true that distribution mattered a lot more. In the 90's corporate radio mattered a lot more. In the 2010's you had a much clearer shot via Youtube or similar. So yeah there's substantial change in how it all works.
The basic core part is the same though. Most music doesn't even have a small chance of being genuinely popular. Because it's the kind of music that isn't really liked by mass audiences.
You're saying this:
> Most bands will never know if their music will be popular because the won't get signed to find out.
That's not true. Those bands do know that their music will not be popular. They just don't know why.
I think we have opposing views on how effective A&R is at talent discovery. Like you say, they only have a 1 in 10 record of success. That looks like they have no clue what people want and what people don't want.
I've been to tons of packed clubs with unsigned bands. I've seen absolutely amazing musicians who don't even play live, just give lessons...
The "band as a brand" is a 20th century anachronism that equates commercial success with "goodness".
But we're back here. I still disagree with this, it's a poor analysis of what's actually happening.
In music, commercial success, more than any other factor, comes from making music that is liked by large numbers of people.
If you can make music like that you'll probably have commercial success.