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Viewing report
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Digital Music: Arrival of the e-Label
Generator Research Limited, Feb 2006, Pages: 10
A New Type of Label Where Signed Artists Will Never Release CDs
- Business Rationale
- Investment Capital
- Market Developments
- Role of Existing Labels
- Talent Perspective
- Risk/Return Equation
Two of the major record companies have already launched all-digital labels and several similar initiatives have been announced by independents. Are these developments simply a fad or are they harbingers of a fundamental shift in the historically-proven investment strategy that has been used by record labels for many years?
Having first described what an e-Label is, the report explains how an e-Label is supposed to work for both the owner and the signed artist: Why would talent be interested, what services are on offer and what are the restrictions? What does the label have to do, how much capital is required and what are the risks?
The report then reviews the business case for the e-Label by analysing how the arrival of digital music has affected both the investment risk/return equation and the capital commitment required to find, develop and break a new act.
The differences between the function of a conventional record label and an e-label are explained for all stages during the talent-development process, from the techniques used to source talent to the point when the first material is released.
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