Concerned over the downturn in CD sales,
the 5 major record companies consider amalgamating even further, going by the theory that bigger dinosaurs have a better chance of surviving. Which is ironic, given that one reason cited for the decline in CD sales is the increased homogeneity of mainstream recorded music, itself a result of the wave of amalgamations of the 1990s and the fact that most record labels are controlled by risk-averse bean-counter types.
(via TechDirt)
I draw the analogy between record companies and recording companies. In much the same way big oil companies have turned into oil 'banks', relying on the risk-taking wildcatters for new finds, the big record companies have become talent banks, relying on the risk-taking indie labels to find important new artists.