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Warner Bros' New Biz Strategy - the e-label Warner Music readies CD-free 'e-label'
By Declan McCullagh ASPEN, Colo.--Warner Music Group is creating a new music-distribution mechanism that will rely on digital downloads instead of compact discs. Edgar Bronfman Jr., Warner Music's chairman and CEO, said Monday that the new mechanism will be called an "e-label," in which artists will release music in clusters of three songs every few months rather than a CD every few years. "We're trying to experiment with a new business model," he told an audience of about 150 people at a Progress & Freedom Foundation conference here. "We're going to try to see where this goes." Warner Music's move seems to be a response to the exploding popularity of music-download services and the slowly slipping sales of physical CDs. According to the International Federation of the Phonographic Industry, about 180 million songs were sold online in the first half of 2005, up from 57 million in the same period last year. Apple Computer's iTunes recently passed 500 million downloads. The e-label will permit recording artists to enjoy a "supportive, lower-risk environment" without as much pressure for huge commercial hits, Bronfman said. In addition, artists signed to the e-label will retain copyright and ownership of their master recordings. Bronfman also took a few swipes at the technology industry while praising the U.S. Supreme Court's recent decision in the Grokster file-swapping lawsuit. It will "inspire further technological innovation and will accelerate the growth of legitimate digital music services," he said. He said he didn't support government interference in "what should be normal fair-market mechanisms," but praised mandatory requirements designed to filter pirated material from peer-to-peer networks and levies such as Canada's proposal, currently on hold, to tax iPods. "We like government levies when they benefit us," Bronfman said. "I would like none of the legislators in France, for instance, to say they should no longer pay us a levy for all the blank CDs that are being sold, (though) it doesn't make up for the revenue that we're losing...If the government mandated filtering technologies, we'd be delighted." [Edited 8/22/05 12:28pm] a psychotic is someone who just figured out what's going on | |
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I just read the first paragraph and think I'm going to be sick. Three songs every few months? Isn't the reason that albums seem to take so long to get out is because of record company poltics. Are they claiming this is going to end and artists will just record and release like this? It's much more likely that they will have full albums and just release them piece meal and thus it will end up costing the consumer more. Rather than buying a full disc for as low as $9.99...let's spread out 4 downloads of different chunks for the CD for $4 (a dollar a song, I'm sure). This sounds terrible. I have an idea they will do this with new artists and nobody like Madonna. Please don't massacare the Madonna album like this. People don't want to wait for downloads...just give us the full disc and let us listen. | |
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this could be a good idea. back in the day most performers released several singles before an album was ever released rather than the (first) single-record-tour method that is now used. this could provide artists with a way to release work as it is made. they could also get instant feedback on a sound their toying with rather than making a record and then finding out nobody likes that sound. | |
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This seems to be a better idea for rejuvenating the "singles" market, but not the "album" market. | |
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btw, at first I thought this thread was going to be about the Biz:
He used to be on Warner Bros. | |
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CinisterCee said: This seems to be a better idea for rejuvenating the "singles" market, but not the "album" market.
I agree. | |
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CinisterCee said: btw, at first I thought this thread was going to be about the Biz:
He used to be on Warner Bros.  a psychotic is someone who just figured out what's going on | |
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SassyBritches said: this could be a good idea. back in the day most performers released several singles before an album was ever released rather than the (first) single-record-tour method that is now used. this could provide artists with a way to release work as it is made. they could also get instant feedback on a sound their toying with rather than making a record and then finding out nobody likes that sound.
This is a great idea in theory, but I'm sure the record companies will find a way to totally screw this up. They will overcharge for singles, they will require the artists to sign away their publishing rights in some sneaky way or screw them out of their royalties, and the digital tracks will be heavily loaded with DRM so that they can't play in iPods or be copied to other devices. I know that there are hackers who could probably crack the DRM stuff, but isn't there already an efficient e-label distribution service out there now? I think it's called iTunes.  | |
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I like the new mentality that "it's the blank cd's that are doing us in", it's just laughable. Yeah, great business plan, what's the next real one and who will come up with it. I agree it's itunes but the process will change by a record company with a clue. | |
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Stax said: Warner Music readies CD-free 'e-label'
By Declan McCullagh ASPEN, Colo.--Warner Music Group is creating a new music-distribution mechanism that will rely on digital downloads instead of compact discs. Edgar Bronfman Jr., Warner Music's chairman and CEO, said Monday that the new mechanism will be called an "e-label," in which artists will release music in clusters of three songs every few months rather than a CD every few years. "We're trying to experiment with a new business model," he told an audience of about 150 people at a Progress & Freedom Foundation conference here. "We're going to try to see where this goes." Warner Music's move seems to be a response to the exploding popularity of music-download services and the slowly slipping sales of physical CDs. According to the International Federation of the Phonographic Industry, about 180 million songs were sold online in the first half of 2005, up from 57 million in the same period last year. Apple Computer's iTunes recently passed 500 million downloads. The e-label will permit recording artists to enjoy a "supportive, lower-risk environment" without as much pressure for huge commercial hits, Bronfman said. In addition, artists signed to the e-label will retain copyright and ownership of their master recordings. Bronfman also took a few swipes at the technology industry while praising the U.S. Supreme Court's recent decision in the Grokster file-swapping lawsuit. It will "inspire further technological innovation and will accelerate the growth of legitimate digital music services," he said. He said he didn't support government interference in "what should be normal fair-market mechanisms," but praised mandatory requirements designed to filter pirated material from peer-to-peer networks and levies such as Canada's proposal, currently on hold, to tax iPods. "We like government levies when they benefit us," Bronfman said. "I would like none of the legislators in France, for instance, to say they should no longer pay us a levy for all the blank CDs that are being sold, (though) it doesn't make up for the revenue that we're losing...If the government mandated filtering technologies, we'd be delighted." [Edited 8/22/05 12:28pm] ----- "supportive, lower-risk environment" without as much pressure for huge commercial hits, Bronfman said. In addition, artists signed to the e-label will retain copyright and ownership of their master recordings. - Does the concept of the artist owning the master recording sound familar. | |
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