In keeping with her "I'm a huge rock star" mentality (delusion?), I think signing with a smaller/less prestigious label would be a slap to her ego.
I felt this way with TISL as well, and even then wondered why WB is still involved with an artist (including FM) that it seemingly refuses to promote...?
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"Ooh, there is magic...all around you...
every time you walk in the room..."
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