Stellar Biz Model: Warner's CD-Free "e-Label"

Warner Lets Loose With a CD-free e-LabelWarner Music's chairman and CEO, Edgar Bronfman Jr., talked about their new, experimental music distribution model that relies on digital downloads instead of CDs.

Warner Music's e-Label:
* Artists will release clusters of songs every few months, instead of entire albums every few years.
* Artists will retain copyright and ownership of their master recordings. Wow.

The e-Label is an excellent way for Warner to 1) respond to the declining sale of CDs and simultaneous surge in download sales, 2) be less dependent on a hit-based business model, 3) develop a non-threatening “partnership” with its artists, and 4) “test market” digital artists with a minimum cost, for possible promotion through physical media in the future.

Bravo, Edgar, bravo. Warner is making a smart move by allowing artists to own their content, considering the many empowering technologies already at their disposal. It’s encouraging to see major labels taking steps towards “partnership-based” business models.

(Thanks to Rob at Podcast NYC for the tip)

UPDATE: Some good thoughts on this announcement from Brad and John (Magnatune founder).

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