Labels are (Vertically) Dis-Integrating (As Well They Should)

Record labels continue to vertically disintegrate.  The news that Universal Music Group is selling their CD & DVD manufacturing & distribution operations to an Atlanta-based tech company got lost in all the hubbub last week.  This combined with the labels' moves to make music videos & master tones into profit centers means they're vertically dis-integrating from non core competencies, and, instead, horizontally integrating/expanding.  Good.  That's what they need to do.  As others have argued, vertical integration doesn't work anymore.