I've read this before...
There's definitely a lot of financial corners you can cut, especially with recording technology being what it is now, etc. Here's my gripe with ALL labels though...
A lot of time and effort is spent trying to prevent pre-release promo CDs of albums from leaking on the internet months before the CD's actual release date. This is stupid, and antiquated. Here's what should be done:
1) The day an album is mastered, put it on iTunes and other legit download services. Then people will purchase it instead of ripping it for free!!
2) People can wait for the physical CDs to get to stores. Besides, stores rarely stock new releases, unless they're guaranteed to be in the Billboard top 20.
The industry is losing billions of dollars every year because of this one issue. What I am suggesting would fix it overnight, and eliminate the backwards infrastructure of secrecy, but no labels seem to have the balls to actually do this, even the indies!!!
The main reason to fear record labels in general is because of their fundamental lack of vision and lack of willingness to change with the times. They and their artists will be crushed in the wake of a consumer pace that is outrunning them. Ultimately, the consumer always wins, and the ironic thing is that labels are fighting consumers. This will be their undoing.