smoe.org mailing lists
ivan@stellysee.de
| From | MCGaudio@aol.com |
| Subject | Re: More musicians lose jobs |
| Date | Wed, 31 Mar 2004 19:22:32 EST |
[Part 1 text/plain US-ASCII (1.4 kilobytes)]
(View Text in a separate window)
The thing I find most interesting about these deals is that the small labels
the major label buys are often reasonably profitable on their own, but
somehow no longer are once acquired. Despite what should be lower manufacturing
costs and other savings. Not sure if it's because the small labels no longer
follow the same business model once acquired (maybe having grandious ideas because
they're part of EMI or whomever know), or if the percentage going to the
corporate overhead kills them, or if it's something as simple as they have to
start paying for benefits they didn't have to before.
And does the outsourcing of manufacturing mean that EMI believes the end of
the physical CD is in sight? Since the people doing the manufacturing for
them clearly plan on making money, and one of them is in fact buying their
Netherlands pressing plant, it would be cheaper for EMI to keep pressing their own,
I would think. Unless the goal is to get the cash sale on the books to look
good this year, and if it costs more over the next five years they'll worry
about it then.
Sorry, I've clearly been working for a large company for too long, I can't
help pondering the P&L of the music biz moves.
On a side note, I also have to heartily recommend the new Franz Ferdinand
disc. I doubted the hype and didn't want to like it, but I couldn't help myself.
Mark
Mark
For assistance, please contact
the smoe.org administrators.