wired - universal: response

Who cares if everyone knows the words to the latest John Mayer or Britney track? If they aren't buying, at least in previous quantities, labels are simply a promotional machine - not a money-making business. And that is not a good business to be in.

The recorded asset may simply be an unprofitable piece of the food chain, and only broader ventures can capture the next-generation.

Maybe the future looks more like Artist Nation (the newly created 360-degree subdivision of Live Nation) than Universal Music Group. Or, perhaps smaller players collectively rule the space. Either way, this market has an extreme amount of transition - and pain - ahead of it.

http://www.digitalmusicnews.com/stories/112807parting