THE MUSIC DOPE

comments on the machinations of the music industry

Tuesday, August 23, 2005

Warner to launch unconvincing gimmick called "e-labels"

Billboard PostPlay: Warner To Launch "E-Label":
"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.
He was speaking at a conference...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."


What exactly is the motivation for Warners on this?

Assuming the deal with the artist is typical, Warners will pay an advance, pay for recording costs, and have to gin up marketing costs every few months (advertising? publicity? tour support?) to support multiple yearly releases. Oh, and they don't retain ownership, which currently is something that the labels are iron-fisted about retaining. Add in to that the low margins for products like iTunes tracks.

Under these assumptions, there is simply no reason to think that Warners will give any sort of priority to an e-label. This announcement sounds like a stupid promotional ploy.



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