If Apple (or Google) had wanted to buy out the record labels and their catalogs, they could have done so years ago. They obviously didn't, probably because it's a dying industry that isn't nearly as profitable as their current products.
The very idea of a 'record label' is a relic of the 20th Century, when all recorded music was distributed on heavy physical artifacts.
Not sure I follow. Who said anything about buying out the record labels? Apple can just <become> a label-replacement. There is still a need for a distribution/production/promotion service layer in music biz.
The very idea of a 'record label' is a relic of the 20th Century, when all recorded music was distributed on heavy physical artifacts.