Even if they are integrating from a legal and operational perspective, there would most likely still be an internal cost accounting function. The music industry could be the exception I guess, but it’s pretty unusual these days for large companies not to allocate budgets and expenses at the product (e.g. label) level.

Wow, you said what I was originally thinking way more clearly than I did. :D

ITA. But what makes sense in Q3′s scenario to me is that they are consolidating the labels themselves, not just having different labels that share some functions. So IF that’s accurate, then I can imagine a scenario where it is all the same company that has different A&R teams (?) under one roof, and the label names are just window dressing. If that is what they are working towards, then it kinda makes sense. So Kris would have had a budget set at the beginning, but now if Jive’s “team” wants to go back and extend his budget to push another song they would have to justify it to the same people that approve budgets for the other “teams”, since it is all really the same entity now. Kind of like an ad agency has different creative teams handling different accounts, but they are not treated as a separate mini-companies though they may have budgets allocated.

What still doesn’t make sense is why they would bother having different labels names anymore, but maybe those are the next to go? Maybe its a hold over from merger agreements or existing contracts or something? All I know is that shrinking things down to fewer entities does make sense since the industry is not generating the kind of profits that would support so many fully separate huge companies anymore. That overhead would have to come down somehow.

As far as Kris… I think Ellie’s scenario makes the most sense, where they may be hoping for a Hey Soul Sister type situation (take off on HAC then cross it over)… that would be the easiest, least expensive place to push the song right now.

Oh, and Lee’s song is doing fine IMO.