WMG To Launch Digital Only E-Label

According to Billboard.biz, a struggling Warner Music Group is about to launch a long rumored digital-only "e-label".

"Artists signed to the e-label will have their music distributed only as digital downloads, not CDs or other physical media. Speaking to the Progress & Freedom Foundation,WMG Chairman Bronfman said the strategy is to give emerging acts a channel for less-costly distribution without the usual label pressure of widespread commercial hits."

"While the old system allowed an artist time to develop and grow, today’s business is such that an initial commercial failure for most artists means they no longer get a second chance…The e-label, he added, will not require artists to have enough material for a full album, or adhere to normal album release schedules. Instead, the e-label will publish three or more songs released every few months. In addition, artists signed to the digital-only label will retain full ownership of their masters and copyrights for as long as they’re signed to the e-label."

"Bronfman did not indicate when the label would launch, but sources at WMG tell Billboard.biz it is expected to begin operating before the end of the year."

Hypebot: Not revolutionary…but a smart piece of market research with little downside if (and only if) Bronfman is willing to put some marketing resources behind the e-label.