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Anetlabel (alsoonline label,web label,digi label,MP3 label ordownload label) is arecord label that distributes its music throughdigital audioformats (such asMP3,Ogg Vorbis,FLAC, orWAV) over theInternet. While similar to traditional record labels in many respects, netlabels typically emphasize free distribution online, often under licenses that encourage works to be shared (e.g.,Creative Commons licenses), and artists often retaincopyright.[1]
Netlabels may have a considerably lower staff count than traditional record labels, in some instances being only a single individual in control of their music, maintaining sole ownership.[2] PhysicalLPs, for example, are rarely produced by a netlabel, relying entirely ondigital distribution and means of theInternet to provide the product. Having no physical product makes the running costs of a netlabel considerably less than a traditional record label and some netlabels have abandoned any financial model altogether and instead, running the netlabel as ahobby.[3] Some employguerrilla marketing to promote their work.[citation needed]
Online music groups date back almost as far as the history of personal computers, and share close ties withvideo games and thedemoscene. Early music groups released music inMOD formats, typically as part of amusic disk, which often included a MOD player, visual effects, and textual information.
Netlabels began to branch out from thetracker scene when the lossyMP3 file format became popular in the late 1990s. Some are still dedicated toelectronic music and related genres, though this is rapidly changing and the quality of downloads are getting higher with the use ofFLAC downloads offering CD quality music.[citation needed]
Most of the original netlabels have now ceased operations. Only a few of the originators of the movements are still currently active, and releasing in the same format, like Eerik Inpuj Sound, Upitup Records, 50/50innertainment Records, Kahvi Collective, Bedroom Research, Acroplane and Phonocake.