This is all a reaction to a changing industry. I have a large piece that I am working on right now which will show why the whole industry will eventually look like the independent labels. I also think that as this goes, and labels spread an even amount of time on artists that we won't have the highs and lows in rock music. In the present day, it seems that rock has huge highs and lows, but I think it will be more of a consistent demand in the future.

Warner's once had the best rep for developing artists, those days are gone (no loss in the case of 3rd Eye Blind, IMHO. If it allows artists to do what they want, and use the Internet to publicize & distro themselves, I think it will be a bettert hing, considering the corporate elelments really don't care about music, the artist, or the customer. Sure, they use a business model, and what the market will bear, but selling music is not the same as selling cars, it does need to be done differently.
The indusrty missedthe boat 5 years ago, they are going to slide further before they make any headway back into my wallet.

there's probably some truth in that with every single major label.

now it's all about getting the 'product' to 'market'.

holy crap! comment-posting is fast!!

quicker than shit through a goose

But just think what Warner is doing - they're selling off artists who are currently developing, in other words, artists who may not have had a big hit but may in the future. They're just giving those right over to smaller labels who will pamper them and give them space to develop - and then one day some of these groups are going to have that One Big Hit. That small label will get attention and money and suddenly Warner and their ilk are going to be gasping for air as all these indie label surpass them in sales. They're killing themselves off - not that it would be such a bad thing. Maybe this is a sign of a coming music-industry revolution . . .

Yes, I think you are right Tom. The radio stations primary functions have been paying for recording, getting music on the radio and other types of marketing. These are all easily done by smaller labels and Radio is almost irrelevant now, so I do think the industry is changing.

There are two issues which obscure what is happening with the majors. For the past 8 years they have funded their growth by acquisition (just like dot-coms with stock swaps) not through productivity.

On the music side, they have used a 20/80 formula, which means only 1 out of 5 releases makes money. Or if you look at it like a business case, almost everything they do is a failure. Essentially, they have been kiting cheques for a decade, and it is running out.

By dropping acts which aren't making money, they can do accounting shenanigans to turn losses into depreciation or some-such to get through another year.