And that was always been wrong. Performers, whether or not they are credited as songwriters, are still offering value to the labels. And of course, the division of labor has changed over the years in the recording industry, too, with lots more people being both the song writer and performer post-Beatles (though there are still professional song writers who are not performers).
It’s always been a highly exploitative industry, especially with regards to performers of colors. The goal was to enrich the labels at the expensive of the people who produce the value (song writers and performers). So, yeah, it’s not new, but it’s still exploitation and always was.