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