The UK (and maybe everywhere else?) corporate music people have a lot of very old industry insiders who think music can't be produced without studios (they "provide value," after all), think the internet is a fad, and think all real music should be sold on physical media.
Exactly. They don't realize that though. I was at a talk with some UK IFPI execs last year who just didn't understand computers or the internet or online self-promotional distribution. It was kinda astounding. He kept harping on the point that "you just can't get quality" unless you're backed by a studio belonging to his organization.