I looked at the artists on Esl and I never heard of any of them. I have seen almost every band on friends records. Times are changing and no one needs anyone to make CDs for them. Does this esl label even do vinyl releases? Hutch you sort of are not the most up to date person on the local scene. The artists that are bigger don't stay on the local labels. Wye Oak is on Merge, Beach House on sub pop, future islands on 4ad, animal collective on domino.
You can't just sit on your ass and think your label is going to succeed. The smaller local labels fill a gap and they are useful for the artists and their fans. I doubt anyone thinks they are going to make a living off of them. If thieverary corporation was in it for the money they need to sign better artists and promote them. Once a band signs to a label like sub pop they get a ton of exposure, reviews in the press, articles in music magazines, they get better reviews, tv appearances.
Running a profitable label is not a part time vanity thing. I think the streaming sites lose money. What is your next attack? Fm radio and how they screw the artists.