Should record labels adopt the VC mentality

Here's what journalist Andrew Orlowski has to say about Terra Firma chief Guy Hands' recent comments that EMI execs should start to think of themselves as "venture capitalists" in an interesting piece on The Register. Orlowski writes: "In our experience, acting like VCs means throwing money at hopeless dot.com start-ups - pick a card, any card! - while convincing the press that there's a New Economic Paradigm just around the corner... The trick lies in creating the demand - then making a sharp exit. They're really PR companies spending someone else's money... So the VC model is a lousy one for music: so long as sound recordings have value, record companies need artists they can milk for decades. Dead or alive, it doesn't really matter". I think that means he disagrees with Hands' remarks.