What is "netlabel"

n. A record label that distributes most of its music online through digital audio formats.

A netlabel (also online label, web label, digi label, MP3 label or download label) is a record label that distributes its music through digital audio formats (such as MP3, Ogg Vorbis, FLAC, or WAV) over the Internet. 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 retain copyright.

Netlabels may have a considerably lower staff count than traditional record labels, in some instances being only a single individual in control of his/her music, maintaining sole ownership. Physical LPs, for example, are rarely produced by a netlabel, relying entirely on digital distribution and means of the Internet 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 a hobby. Some employ guerrilla marketing to promote their work.