Looking at the website it looks like the schools pay Pop connection a fee of £350, then teh school sells CD's to parents/families etc to cover any additional costs. That seems to be where Pop connection make their money. It doesn't look like that sre making money by selling the CD's on teh open market. To me it looks a bit like the typical DVD/Video done of the school play tbh.
A company comes in and taches teh kids some songs (I guess that practice beforehand) then they record the songs, produce Cd's and sells them to parents.
Also looking at what they write about the songs they are not hymns as such, they are more about being nice and kind etc. These are things that are good no matter if you have a religion. I don't know if they even mention god in the songs.
Here is a bit from the ethos of the company
' It seeks to teach and model essential life values of love, truth, justice, reconciliation and forgiveness. We believe the way we behave towards one another is vital to improving our communities. All people are valuable regardless of their gender, race, ethnic origin, marital status, sexual orientation, religion, age and physical and mental capability. We want children to learn through music and performing arts how to value people that are different to them.
We acknowledge the freedom of people of all faiths or none, both to hold and to express their beliefs and convictions respectfully and freely.
We never want to impose our Christian faith or belief on others.'
I am jewish and it sound like fun to me.
Bear in mind your daughter might have got the wrong end of teh stick about being 'chosen' and the permission thing. Looks like the leaflet and website has informed you, and I don't think they are really pushing Christianity.