Warner Music Group is creating a new music-distribution mechanism that will rely on digital downloads instead of compact discs.Source: Engadget.
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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.
This is the obvious trend -- moving away from distribution of music on physical media to making it available for download. P2P has been doing this for years, and it's about time the music industry started to head in this direction. Their cost system was based in part on the capital layout required to burn and distribute discs, and when you eliminate that cost, you can afford to hire more artists and take more chances.
It will be interesting to see if they take on distributing the MP3s (or whatever) themselves or license them to Apple (for iTunes) and other outlets like Music Giants.
Technorati Tags: music, music industry
1 comment:
I like this trend. It means I can buy songs I like without paying for those I prefer not to own. And if later I change my mind.... But what about those who like high end recordings?
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