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August 22, 2005 11:22 AM PDT

Warner Music readies CD-free 'e-label'

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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."

A Warner Music representative said afterwards that the company did not believe it was politically feasible to push for mandatory filtering and it was not supporting such a requirement--or blank media levies--in the United States.

See more CNET content tagged:
Warner Music Group Corp., mechanism, artist, CD, download

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With each new medium we lose....
by TheShane August 22, 2005 12:19 PM PDT
It amazes me that every time the music industry switches to a new medium the quality of sound goes down while their profits go up...

Ya sure, those mp3's sound amazing with your cheap little earphones or computer speakers but try listening to them with your home theatre system.

It's the music industry who are the real music pirates.

When I download FREE music I don't care much for the quaulity. For purchased goods I better be getting GREAT quality and even at 320kbps an mp3 is not GREAT...
Reply to this comment
You may be correct...
by August 22, 2005 12:51 PM PDT
I am no audiophile, but I do love my music. Being a customer of
iTunes, I do enjoy the resonable pricing for the songs, but since
I mostly listen to my music on my iPod anyway, what am I to
complain about? I mean really, my hearing is probably going
anyway, and by the time I can afford a system like you have, I am
sure my hearing will get worse once again.

I like the model system that Warner is taking, but like most of
those large media companies, they are crying wolf because they
never thought of, reacted to, or cared too much about this
"downloading" concept in the first place. They simply fell asleep
at the wheel and still want to drive the system. Well I think the
system (general public) is now at the wheel, and you will see
more companies giving the rights back to the artists like they
should have done many, many years ago.

Now speaking of artists, I think it is time for them to realize that
if they want to make money in the music industry in particular,
they've better come up with a new business plan. No longer am
I going to have tears rolling down my face for the "poor artist"
who worked so hard on his/her music, only to make $0.02 per
album sold. What kind of deal is that in the first place? Holy
crap, even a blind man could read between those lines! So
artists, if you want to make it big here are a few tips:

#1. Promote yourself
#2. Make your music stand out, not "meld" into the mainstream
of pop music today. They're too many bands out there that
sound the same, really really too many bands.
#3. Understand technology and use it for your own good.
#4. Promote yourself again
#5. Don't forget, that if people don't like your music, you can
always take a job doing something really useful with your life,
like maybe medical school, or becoming a plumber. Heck we
need doctor's and plumbers, but we don't "need" musicians!
Honest we don't.

Okay, enough from me already, and have yourself a wonderful
day.

Glenn
View all 2 replies
could you document that?
by August 22, 2005 12:54 PM PDT
just quickly thinking about the history of recorded sound, im not sure if its been a steady downward progression. how would you measure it? i understand mp3s are lower quality than cd's, but the transition from reel to LP to casette to CD to digital surely isnt steady downard...
View reply
True: It's the Equipment Food Chain
by Len Bullard August 22, 2005 2:06 PM PDT
That's not wrong, actually. LPs plus a really good system do have slightly better quality. However, part of this is because of the equipment used to record the original sound. Given a 16 track analog recorder at 30 ips on a two inch wide tape, the original sound source is far richer than the 16 track at 15 ips on inch-wide tape, and so on. When we moved to digital, we got considerable clarity at 32 but we have to downsample to 16 for CDs. The compression to mp3 is very noticeable but not a bad compromise for distribution reach. It is not acceptable for general consumption. The CD has it's place. There are also games one can play with analog tape that aren't possible in digital but the convenience of digital for composition is so far superior that only a handful of studios retain analog capabilities and they charge serious shekels to produce an album in them, whereas a pro-quality digital system is pennies per pound and improves in capability at light speed (remember when voice processors were 4k rather than a $50 plugin?)

However, audiophiles are taking a beating, that is true, and tradeoffs are being made.
With each new medium we lose....
by TheShane August 22, 2005 12:19 PM PDT
It amazes me that every time the music industry switches to a new medium the quality of sound goes down while their profits go up...

Ya sure, those mp3's sound amazing with your cheap little earphones or computer speakers but try listening to them with your home theatre system.

It's the music industry who are the real music pirates.

When I download FREE music I don't care much for the quaulity. For purchased goods I better be getting GREAT quality and even at 320kbps an mp3 is not GREAT...
Reply to this comment
You may be correct...
by August 22, 2005 12:51 PM PDT
I am no audiophile, but I do love my music. Being a customer of
iTunes, I do enjoy the resonable pricing for the songs, but since
I mostly listen to my music on my iPod anyway, what am I to
complain about? I mean really, my hearing is probably going
anyway, and by the time I can afford a system like you have, I am
sure my hearing will get worse once again.

I like the model system that Warner is taking, but like most of
those large media companies, they are crying wolf because they
never thought of, reacted to, or cared too much about this
"downloading" concept in the first place. They simply fell asleep
at the wheel and still want to drive the system. Well I think the
system (general public) is now at the wheel, and you will see
more companies giving the rights back to the artists like they
should have done many, many years ago.

Now speaking of artists, I think it is time for them to realize that
if they want to make money in the music industry in particular,
they've better come up with a new business plan. No longer am
I going to have tears rolling down my face for the "poor artist"
who worked so hard on his/her music, only to make $0.02 per
album sold. What kind of deal is that in the first place? Holy
crap, even a blind man could read between those lines! So
artists, if you want to make it big here are a few tips:

#1. Promote yourself
#2. Make your music stand out, not "meld" into the mainstream
of pop music today. They're too many bands out there that
sound the same, really really too many bands.
#3. Understand technology and use it for your own good.
#4. Promote yourself again
#5. Don't forget, that if people don't like your music, you can
always take a job doing something really useful with your life,
like maybe medical school, or becoming a plumber. Heck we
need doctor's and plumbers, but we don't "need" musicians!
Honest we don't.

Okay, enough from me already, and have yourself a wonderful
day.

Glenn
View all 2 replies
could you document that?
by August 22, 2005 12:54 PM PDT
just quickly thinking about the history of recorded sound, im not sure if its been a steady downward progression. how would you measure it? i understand mp3s are lower quality than cd's, but the transition from reel to LP to casette to CD to digital surely isnt steady downard...
View reply
True: It's the Equipment Food Chain
by Len Bullard August 22, 2005 2:06 PM PDT
That's not wrong, actually. LPs plus a really good system do have slightly better quality. However, part of this is because of the equipment used to record the original sound. Given a 16 track analog recorder at 30 ips on a two inch wide tape, the original sound source is far richer than the 16 track at 15 ips on inch-wide tape, and so on. When we moved to digital, we got considerable clarity at 32 but we have to downsample to 16 for CDs. The compression to mp3 is very noticeable but not a bad compromise for distribution reach. It is not acceptable for general consumption. The CD has it's place. There are also games one can play with analog tape that aren't possible in digital but the convenience of digital for composition is so far superior that only a handful of studios retain analog capabilities and they charge serious shekels to produce an album in them, whereas a pro-quality digital system is pennies per pound and improves in capability at light speed (remember when voice processors were 4k rather than a $50 plugin?)

However, audiophiles are taking a beating, that is true, and tradeoffs are being made.
Hard copy, please
by dannyvdspek August 22, 2005 1:19 PM PDT
This is bad news. I want my music in the format I want, in the bitrate I want. What if I were to convert all my music into a future compatible format? Even if the DRM allowed me to convert my collection, the resulting quality would be poor.

The only way I could ever approve this plan of action is if the music eventually would make its way to full-length CD's after three or four of these "packets" have been released, or if the downloads would be lossless quality so I could burn my own. Of course, I don't see lossless music downloads happening for quite a few years.

An upside to this, however, would mean that the artists would have to make their songs better in order to sell each packet - a lot less filler. In the end though, I prefer my hard copy, please.
Reply to this comment
Just a thought
by August 23, 2005 11:49 AM PDT
If CD is the best or ultimate quality that we have, who says so?
What if the music industry actually downsampled the recorded
music to 320kb (I think that's what a CD is) where in fact it was
actually caught on hard drive or DAT at say 640kb.

Where do you draw the line on what quality you want? It use to
be that an LP was good enough, in fact brilliant, then came
along the 8 track which sounded good at the time, then the
cassette which was portable, then the CD. Now if we were you
back then, we would have nothing to listen to because the
quality back then was not nearly as good as what we have today.
So I say, embrace what you have and be thankful that smart
people can come up with new technologies so we can all enjoy
music, no matter the format it's in.
Hard copy, please
by dannyvdspek August 22, 2005 1:19 PM PDT
This is bad news. I want my music in the format I want, in the bitrate I want. What if I were to convert all my music into a future compatible format? Even if the DRM allowed me to convert my collection, the resulting quality would be poor.

The only way I could ever approve this plan of action is if the music eventually would make its way to full-length CD's after three or four of these "packets" have been released, or if the downloads would be lossless quality so I could burn my own. Of course, I don't see lossless music downloads happening for quite a few years.

An upside to this, however, would mean that the artists would have to make their songs better in order to sell each packet - a lot less filler. In the end though, I prefer my hard copy, please.
Reply to this comment
Just a thought
by August 23, 2005 11:49 AM PDT
If CD is the best or ultimate quality that we have, who says so?
What if the music industry actually downsampled the recorded
music to 320kb (I think that's what a CD is) where in fact it was
actually caught on hard drive or DAT at say 640kb.

Where do you draw the line on what quality you want? It use to
be that an LP was good enough, in fact brilliant, then came
along the 8 track which sounded good at the time, then the
cassette which was portable, then the CD. Now if we were you
back then, we would have nothing to listen to because the
quality back then was not nearly as good as what we have today.
So I say, embrace what you have and be thankful that smart
people can come up with new technologies so we can all enjoy
music, no matter the format it's in.
WAV downloads
by August 22, 2005 1:50 PM PDT
I don't see why this would be an issue. A 4 minute song in WAV format is anywhere from 50-100mb. Even if WAV is not completely lossless, I know it's not compressed that much. So imagine 3-4 songs is 1/2 a gig. Even at current download rates, I don't see this being a logistical problem for the label to offer.

Rather, it's all about consumer demand. Audiophiles may prefer full quality recordings, but if the company doesn't see/hear/taste/smell the demand from a majority of buyers, then why would they bother offering it?
Reply to this comment
Exactly
by August 23, 2005 11:50 AM PDT
Touché, the large companies would be wasting time and money.
WAV downloads
by August 22, 2005 1:50 PM PDT
I don't see why this would be an issue. A 4 minute song in WAV format is anywhere from 50-100mb. Even if WAV is not completely lossless, I know it's not compressed that much. So imagine 3-4 songs is 1/2 a gig. Even at current download rates, I don't see this being a logistical problem for the label to offer.

Rather, it's all about consumer demand. Audiophiles may prefer full quality recordings, but if the company doesn't see/hear/taste/smell the demand from a majority of buyers, then why would they bother offering it?
Reply to this comment
Exactly
by August 23, 2005 11:50 AM PDT
Touché, the large companies would be wasting time and money.
Could be a good thing...
by CagedAnimal August 22, 2005 2:11 PM PDT
I fully agree that the poor sound quality and DRM really diminish the appeal of music downloads. I'd be buying many songs if I could get lossless copies without limiting DRM. Until then, release schedule is really a moot point to me in terms of purchases.

Although, other artist payment/contract issues aside, if this kind of release schedule makes the labels feel it worth giving more artists the studio time and exposure, then it could be a good thing.
Reply to this comment
Could be a good thing...
by CagedAnimal August 22, 2005 2:11 PM PDT
I fully agree that the poor sound quality and DRM really diminish the appeal of music downloads. I'd be buying many songs if I could get lossless copies without limiting DRM. Until then, release schedule is really a moot point to me in terms of purchases.

Although, other artist payment/contract issues aside, if this kind of release schedule makes the labels feel it worth giving more artists the studio time and exposure, then it could be a good thing.
Reply to this comment
Why should I buy online #######?
by heystoopid August 22, 2005 3:44 PM PDT
Alas, I have no incentive, to purchase online music, already in lossy DRM format, whilst I can easily purchase, CD's and LP's both new and secondhand without the missing bits encompassed by this format with watermarks. It's all about choices, and as they say, why indeed should I pay additional royalties and fees, for music that I have already purchased!
Reply to this comment
Why should I buy online #######?
by heystoopid August 22, 2005 3:44 PM PDT
Alas, I have no incentive, to purchase online music, already in lossy DRM format, whilst I can easily purchase, CD's and LP's both new and secondhand without the missing bits encompassed by this format with watermarks. It's all about choices, and as they say, why indeed should I pay additional royalties and fees, for music that I have already purchased!
Reply to this comment
good riddance to 1 good song/10 bad song CDs
by August 23, 2005 10:18 AM PDT
One of the key messages from the article being missed here is that the way in which songs are created will change.

Producing 2-3 songs every few months instead of the current standard 12-song CD means to the consumer:
a) less crap music
b) less promotional overload (as the label tries to jam another studio-manufactured-tailored-to-American-Idol-audiences artist down your throat every couple of years... and then you never hear from them again)

For artists it means:
a) less pressure to slag out 11 more songs to fill a CD before the Christmas sales deadline
b) an opportunity to connect with consumers on a more micro level - it's already happening for smaller artists.
c) potentially less burn out for those lucky enough to be caught up in the huge greedy money making machine.

It's all about packaging... and if the labels (and radio stations) are finally waking up to the fact that as consumers, we'd rather be our own dj's than digest more over-processed, inorganic music-like substance.

And some truly creative artists may finally get a decent piece of the pie. Which means we'll hear more diverse and compelling music, whether on our iPods, our home stereos systems, the car, wherever.
Reply to this comment
good riddance to 1 good song/10 bad song CDs
by August 23, 2005 10:18 AM PDT
One of the key messages from the article being missed here is that the way in which songs are created will change.

Producing 2-3 songs every few months instead of the current standard 12-song CD means to the consumer:
a) less crap music
b) less promotional overload (as the label tries to jam another studio-manufactured-tailored-to-American-Idol-audiences artist down your throat every couple of years... and then you never hear from them again)

For artists it means:
a) less pressure to slag out 11 more songs to fill a CD before the Christmas sales deadline
b) an opportunity to connect with consumers on a more micro level - it's already happening for smaller artists.
c) potentially less burn out for those lucky enough to be caught up in the huge greedy money making machine.

It's all about packaging... and if the labels (and radio stations) are finally waking up to the fact that as consumers, we'd rather be our own dj's than digest more over-processed, inorganic music-like substance.

And some truly creative artists may finally get a decent piece of the pie. Which means we'll hear more diverse and compelling music, whether on our iPods, our home stereos systems, the car, wherever.
Reply to this comment
Warners headed in teh Right Direction
by September 16, 2005 8:24 PM PDT
I can understand why they would have to cut down costs--as an indie artist I realized it is damned expensive to put out even a cheap CD--these guys pay top dollar for what they do and are trying to make money and feed their families like everyone else. However, I am no fan of the major record labels and have been saying for years that I think REAL artist with something to say were going to start a musical revolution via internet.

I do think however, that it would be good to have a CD available, even if it is just an EP--at the end of the cluster cycle for people who are interested in a hard copy--this is the paradigm for my own music, and I think it will work.

To the poster who acts as if hard working artist shouldn't even think about money, I have to say that no one on here would work 12-14 hour days for nothing--we all have to eat--we all have to pay rent--an artist wants to hone a craft and HOPES that they can make money at it--that it will be appreciated it for its honesty and if money comes all the better. Who here wouldn't want to have a career doing something they love, and have the money to focus on it solely so you can feed your family AND play music. As long as the artist is being honest, if he gains the popularity to make money, its a no harm no foul. Besides, things like CD's, T-shirts, lighting, sound, and such cost which is Warner's point--a risk free enviornment to promote quality muisic by artist who refused to be categorized and labelled was needed for people who wanted to keep musical integrity but still wanted to do music as a career (and do things like eat and stuff)

Me personally I'd love to be in a place where I could live take care of my needs and focus on my music exclusively--to that end I do not need a million dollars--nor do I want that, which is why I am an indie artist.

If you want to see the old paradigm of how the industry works (and massacres great artist) check out this link.

http://www.negativland.com/albini.html

It explains how someone can sell mega millions and end up broke while the Record labels end up fatter and happier.

I have always said the day I would even consider a major is when they embraced the new technology and stopped treating fans and consumers like the enemy--they have finally done it. I am still leery of them saying an artist retains the rights to their masters and copyrights...I almost choked on that one....if you read the above article from Nirvana's Producer Steven Albini you will know why...

The greedy punks...

Rae
Reply to this comment
Warners headed in teh Right Direction
by September 16, 2005 8:24 PM PDT
I can understand why they would have to cut down costs--as an indie artist I realized it is damned expensive to put out even a cheap CD--these guys pay top dollar for what they do and are trying to make money and feed their families like everyone else. However, I am no fan of the major record labels and have been saying for years that I think REAL artist with something to say were going to start a musical revolution via internet.

I do think however, that it would be good to have a CD available, even if it is just an EP--at the end of the cluster cycle for people who are interested in a hard copy--this is the paradigm for my own music, and I think it will work.

To the poster who acts as if hard working artist shouldn't even think about money, I have to say that no one on here would work 12-14 hour days for nothing--we all have to eat--we all have to pay rent--an artist wants to hone a craft and HOPES that they can make money at it--that it will be appreciated it for its honesty and if money comes all the better. Who here wouldn't want to have a career doing something they love, and have the money to focus on it solely so you can feed your family AND play music. As long as the artist is being honest, if he gains the popularity to make money, its a no harm no foul. Besides, things like CD's, T-shirts, lighting, sound, and such cost which is Warner's point--a risk free enviornment to promote quality muisic by artist who refused to be categorized and labelled was needed for people who wanted to keep musical integrity but still wanted to do music as a career (and do things like eat and stuff)

Me personally I'd love to be in a place where I could live take care of my needs and focus on my music exclusively--to that end I do not need a million dollars--nor do I want that, which is why I am an indie artist.

If you want to see the old paradigm of how the industry works (and massacres great artist) check out this link.

http://www.negativland.com/albini.html

It explains how someone can sell mega millions and end up broke while the Record labels end up fatter and happier.

I have always said the day I would even consider a major is when they embraced the new technology and stopped treating fans and consumers like the enemy--they have finally done it. I am still leery of them saying an artist retains the rights to their masters and copyrights...I almost choked on that one....if you read the above article from Nirvana's Producer Steven Albini you will know why...

The greedy punks...

Rae
Reply to this comment
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