Executives Can See Problems Beyond File-Sharing

Maybe instead of spending all that money suing their customers, record labels could spend it on, oh I don’t know, seeking out new and exciting talent? Perish the thought! This New York Times article Executives Can See Problems Beyond File-Sharing may require free registration but read it just the same.
To me, this is the killer quote from the article and what I think is the bigger long term problem facing the major labels:
And as major record labels have become part of large international corporations, industry insiders say, less attention is being paid to discovering and marketing music properly.
“So many labels are in play-they’re trying to be acquired or acquire another company or merge-so anything that affects their immediate balance sheet is slashed,” one record-label executive said. “Money is not being put into marketing and A & R because people don’t want to spend the money because it looks bad on the balance sheet.”

Hmm…2 for 2 posts! Things seem to be looking up.