Lala, Google’s YouTube, and Last.fm, owned by CBS (parent company of CNET News), are some of the companies that executives at some of the top labels say are generating “cautious optimism.” At the same time, some big-label managers are underwhelmed with the performance of several shops, such as ad-supported download site SpiralFrog, and social network Imeem.

To be sure, none of the start-ups is delivering iTunes-like numbers. Digital music services are still in their infancy and have the misfortune of being hit by a macro-economic wrecking ball early in their development. The label honchos know this and take this into account when evaluating partners. That’s why most continue to strike deals. The most recent came two weeks ago, when Warner Music signed an agreement with start-up peer-to-peer service, Qtrax.