The newly signed Little Ladies meet with Schreiber at a terrible concept restaurant, where plans to record a single are discussed. Anna and Dee both write songs, but Dee's pop/rock song, "O.K.", is chosen over Anna's more literary effort. Thus begins a growing rivalry between the two friends. Meanwhile, Schreiber outlines her plans to her partner at SM Records, revealing her boundless ambition. The band assemble at the distinctly low-rent Galaxy Studios in Camden Town to record, their first time in a recording studio.