August 31, 2005
New digital music labels could bring you tunes by Jihad Jerry and Evildoers
Warner Music Group, one of the world's largest recording companies, plans to launch a digital music label this fall, a move that pushes the music CD closer to the recycling bin of history, reports the Mercury News.
"The "e-label" is tentatively named Cordless. It will release songs exclusively for download over the Internet or to cell phones, without burning or shipping a single shiny plastic disc. Warner joins another giant label, Universal Music Group, which now has more than a dozen artists signed to its digital spinoff.
Digital labels could upend a half-century of business practices that left the musician bearing the cost of marketing and distributing an album. The vast majority rarely see royalty checks beyond their initial advance. With the lower costs of digital distribution, the artists stand to make more money. And unconventional acts could attract big-label backing -- a prospect that means music lovers will hear more edgy, experimental fare.
Compact disc shipments have plummeted 31 percent since 1999, as consumers move away from pre-packaged albums to custom-made playlists, downloaded one song at a time."
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