Netlabel

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A netlabel, also called an online label or download label, is a record label that releases music mainly as digital files (like MP3, Ogg, WAV, or FLAC) over the Internet. Unlike many traditional labels, netlabels often emphasize free or easily shared music, using licenses such as Creative Commons, and artists often keep their copyright.

Netlabels usually have very small staffs, sometimes just a single person. They rarely make physical LPs and rely entirely on online distribution. Because there is little or no physical product, running costs can be much lower, and some netlabels operate as hobbies rather than businesses. Some use guerrilla marketing to promote their work.

Online music groups began early with ties to video games and the demoscene. In the beginning, many released music in MOD format as part of music disks that included a MOD player, visuals, and notes. Netlabels started to branch out when the MP3 format became popular in the late 1990s. While many netlabels focus on electronic music, the scene has broadened and downloads can be high quality, including FLAC.

Most of the original netlabels have ceased operations. A few of the early labels are still active and releasing music in the same format, such as Eerik Inpuj Sound, Upitup Records, 50/50innertainment Records, Kahvi Collective, Bedroom Research, Acroplane, and Phonocake.