I've looked over Warner Music Group's 10-Q filing and a few things stand out.

• SG&A decreased 10% and as a percent of sales were basically even -- maybe a quarter percentage point higher -- with last year. As a gauge of selling efficiency, staying level is a good sign.
• Cost of revenues, as a percentage of total revenues, increased to 55% from 51% last year. That number is going in the wrong direction. This is a time for labels to keep a lid on their wallets as best possible.
• In the risk factors section, WMG admitted that the decline of specialty music retailers "could increase" the negotiating leverage of large retailers like Wal-Mart, Target and iTunes. That's pretty much guaranteed. Also, WMG noted as a risk factor its dependence on a "limited number of online music stores." Those few stores, WMG insists, "are able to significantly influence the pricing structure for online music stores." That's the ol' variable pricing beef.