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Online Music Elektra Records CEO Goes 'e-Label'
By Mi2N
(more articles from this author)
2005-11-19
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Would famed rock & roller "Jim Morrison" of "The Doors" get a record deal on the new Warner Music Group "e-label"? Fans of entertainment news will find out -- Warner Music has officially launched the "e-label" which CEO Edgar Bronfman promised in August of this year.

Headed by veteran record executive Jac Holzman -- the CEO famous for leading Elektra Records in the glory days of "The Doors" -- is now launching the "e-label" record label and going the totally electronic route. In fact, there will be no CD products manufactured or distributed. The label is called "Cordless Recordings" which apparently stands for the stated goal of "No CD" physical distribution and a dedication to all-digital distribution strategies.

Sales for the "e-label" will come from internet downloads from its web site and mobile phone products such as ring-tones. Any new "opportunities" not traditional to the record business will also be explored, including "legal" Peer-to-Peer networks -"legal" is the latest trend in the music business this fall after the closure of iMesh, Grokster, eDonkey and other "illegal" file sharing networks. The entertainment culture http://www.EntertainmentCulture.com of America embraces digital distribution as part of what the consumer wants--- the success of digital downloads at iTunes has proven that to the recording industry.

In addition the "e-label" business model will appeal to musicians who are savvy about technology and do not require the traditional "artist cash advance" from the record company. As a trade-off the "e-label" allows the musician to retain rights to the master recordings of their music. The boom-or-bust mentality of the recording industry will be altered with this business model as artists will not be required to sell mass quantities of units immediately upon release. Cordless Recordings will not service the entertainment culture that is not tech-savvy and are still avid CD buyers -- the label's plan is to release songs in non-traditional format of 1-3 songs at-a-time -- rather than the album context.

Warner Music Group has not formally announced any plans to release physical CD products from any "hit" musicians -- the "Jim Morrison" icons of today that may appear on http://www.cordless.com. Another battle is emerging in the music world, since MySpace.com launched its own record label last week -- already a CD is due for release on November 15, 2005. The musicians are already on MySpace in record numbers -- now Warner Music Group is joining the race to sign-up "e-label" artists.

Related News from Mi2N:
» Online Music Elektra Records CEO Goes 'e-label'


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