When it is no longer necessary. Which to me means when music labels (or what every they will be at this point) no longer feel the need to cooperate and instead act as a retail/service business.

What conditions need to exist in order for it not to be necessary? Or perhaps I should ask: what value are record companies adding today? 30 Years ago, it was clear that record companies were necessary. Making and distributing music was relatively capital intensive. That's no longer the case; recording has become a lot cheaper and distributing music is theoretically free. Record companies still have a role in promoting artists but what else are they needed for nowadays?