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Like many aspiring musicians, Sebu Simonian longed for the day when he would sign a contract with a major record label, giving him at least a shot at rock stardom.

But the 28-year-old lead singer of L.A. band Aviatic said he recently ended discussions with several record companies, including a major label, that had expressed interest in working with his band. They couldn’t agree on the terms of a contract, he said, so Aviatic opted to become an “e-band,” peddling its music online.

“Most musicians, when they start out, think you’ve got to get signed in order to succeed,” Simonian said. “But now that the Internet has developed to become a really powerful tool to sell yourself, it’s not as necessary.”

It’s nice to have the deep pockets and clout of a major record company. Without them, the guest shot on “The Late Show With David Letterman,” the music video, the spot on a radio playlist and the headlining concert remain longshot dreams for most artists.

Nonetheless, the Web is turning into a viable alternative with which bands can develop a following and earn some money while still pursuing fame and fortune. Such popular groups as Britain’s Arctic Monkeys used the Web extensively before getting a break. Indeed, music companies are embracing the Internet as a convenient way to scout new talent.

“Labels will start to treat e-labels as farm clubs,” said Aram Sinnreich, managing partner at Radar Research, a media consulting company based in L.A. “The Internet is going to become a market testing bed.”

Bands like Aviatic know it’s risky to depend only on the Internet and concerts to promote their music.

But as more Web services provide artists a venue to make a name for themselves online, bands are realizing that signing with a label is no longer a make-or-break proposition.

“It used to be that a record label was the only way you could go,” said Jay Frank, head of programming and label relations at Internet giant Yahoo Inc.

Opportunities are ample at sites such as Yahoo Music and at digital distributors like Tune Core, Orchard and Digital Rights Agency. Social networking site MySpace, which hosts 3 million bands online, recently partnered with Snocap Inc., a company that helps artists sell their music online.

“Artists are increasingly being offered a broader set of tools to distribute their music online,” said Alex Rofman, director of business development at Snocap.

Portland, Ore.-based CD Baby features the work of more than 155,000 artists who earn a combined $35 million a year through the service. The independent distributor takes a $4 fee per album sold on its site, giving artists a bigger cut of their record sales than they would get through a label.

“Now, artists can give the finger to the labels and just do it themselves until the situation is really right,” said Derek Sivers, president of the company.

Check out Aviatic at aviatic.us.

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– Read RedEye’s stories about local musicians using the Internet. Go to redeyechicago.com/mystage.