But now with gigabytes of cheap storage in our computers, MP3 players and other devices, we can cart around thousands of songs without the burden of packaging or scratched discs. So, are CDs so last century?

Well, they're not dead yet. Brick and mortar retailers and even most of the major Web retailers still rely on CD sales for the bulk of their music revenue and probably will for years to come. But as more and more consumers (especially kids and young adults) seek music in digital format, labels, retailers and delivery systems are adapting.

Until recently, the majors viewed digital distribution as a complement to their "core" business of selling physical media via traditional channels. When digital music outlets could no longer be ignored, the labels padded their revenue by making their physical catalog available to iTunes and similar services to sell as digital files. Digital was still a partner, not a predator.

But Warner Music Group's official launch of an electronic label, or "e-label" this month could be the beginning of the end for albums as we know them. Don't get me wrong. Warner's new e-label, dubbed "Cordless Recordings," won't immediately wipe them out. But the venture could prove that digital-only releases can be successful-not just as complements to traditional CD sales, but as a replacement for them.

Warner's brand new approach re-interprets the traditional definition of an album. Rather than pressing shiny discs with 10-15 songs and hoping that at least 3 of them don't suck, its Cordless label is releasing "clusters" of three or more songs every few months. Their hope is that the continuous flow of new music will increase the interaction between artists and their fans.

In addition to promotion/distribution via traditional channels, Cordless releases will also be available on a variety of online music services, as well as through wireless carriers and "legal" peer-to-peer networks.

WMG Chief Executive Officer Edgar Bronfman has been eager to test out the e-label concept for a while now. But Cordless Recordings is the brainchild of legendary music executive, Jac Holzman, the founder and former CEO and creative head of WMG's Elektra and Nonesuch Records. "When we started to think about Cordless, certain lessons from the past kept returning to me," says Holzman. "The close, creative relationship with artists and their fan base by frequent release of records, keeping costs low and having a methodology that would let us use our medium to introduce our material to more fans."

Jason Fiber, the founder of Superfecta Recordings and The Ideal Copy will run day-to-day operations as president of the label. Fiber says Cordless will adopt "a new approach to introducing tomorrow's great artists while offering a home for established musicians who want to make the most of today's online world." Translation: Both established and new artists should benefit from the cluster concept.

With its access to the vast library of WMG's Atlantic Records and Warner Bros. Records, the Cordless game plan provides those artists with millions of fans the chance to issue one-off digital clusters, perhaps relieving some of the pressure to release a full album when only three or four cuts are up to snuff (eliminating the need for lousy filler tracks). And, conceivably with lower overhead costs, developing artists may seem like less of a risk and get a chance to woo larger audiences with their most accessible tunes.

Cordless has already signed a number of artists, including Breakup Breakdown, Dangerous Muse, Nozzle, Koishii & Hush, Humanwine, and… uh… Jihad Jerry & The Evildoers, a satirical group that features Devo legend Jerry Casale (the group’s biting political satire includes a song that hijacks the hedonistic Las Vegas slogan and applies it to the War on Terror… "what happens at Abu Ghraib stays at Abu Ghraib." Ouch).

And while Cordless is clearly trying to break some new acts with the e-label concept, the Casale signing suggests that Cordless could also become a good vehicle for well-known acts that might be getting their second wind. Devo, after all, has been racking up stellar numbers on tour as Gen-Xers flock to recapture their 80s mojo.

New York City-based entertainment lawyer Steven Masur, who represented Casale in his negotiations with WMG, says it makes sense for majors like WMG to sign "artists who have a strong niche following" using e-label distribution. While "it remains to be seen" whether WMG will devote the necessary resources to artist promotion, Masur says "it could be a good opportunity if the labels put enough into it. If the majors wish to seize this opportunity and really make something of it, they will have to commit the appropriate resources and be both wise and aggressive about how they promote music to be sold exclusively online."

As for unknown artists, Masur says the e-label concept "is definitely a long-tail opportunity" and "opens up a new channel for people who otherwise wouldn't get a deal." E-label deals could also become a good testing ground for emerging artists that haven't yet proven themselves commercially. "Could it be a good stepping stone?" he says. "Absolutely."

That's good news for Indie artists and managers everywhere. Although Cordless' first acts seem skewed toward the Rock and Electronica/Pop genres, other labels are already popping up to serve other genres and adding to the model.

One example is Magnatune, which which features a lot of classical and world/new age music and whose corporate slogan is "We Are Not Evil" (Just in case you were wondering). Their CEO John Buckman has actually combined the e-label concept with a music-licensing clearinghouse, offering up pre-cleared versions of songs that show-biz types can snag for movies, TV and commercials. The licensing fees are all calculated on the spot based on a checklist to determine usage and other factors, allowing someone to close the deal right over the Internet. 

Such features don't match the promotional muscle of a well-funded major label, but Buckman says such value-adds can give artists that invaluable edge in the digital realm. He also suspects that big labels like WMG have other motivations beyond simple innovation. "I see Warner's e-label as fear of iTunes," he says. "If you're a big artist like Prince, you'd rather just sell your stuff at iTunes than give a cut to the label. Warner sees that they're big artists could ditch them."

Whatever WMG's motivations in creating an e-label, you have to give Bronfman and the gang credit. At least they're trying to move beyond an aging business model that was pointed straight into the grave. In launching Cordless Recordings, WMG has shown at least some willingness to experiment. And that's a good start.

(Mike Grebb is a writer, journalist and singer/songwriter based in Washington, D.C. He just completed his debut solo record, Resolution, which is available at www.mikegrebb.com, as well as digitally on iTunes, MSN Music, Musicmatch, Yahoo! Music Unlimited and other sites. You can also be his friend on MySpace! www.myspace.com/mikegrebb).