According to the New York Times, the Universal Music Group has set up a new label in the US which will be devoted to exclusively online releases.
Universal Music Enterprises Digital will 'sign' currently unsigned artists with an existing catalogue of tracks and a small but strong fanbase. The label will then make their tracks available via Universal's existing relationships with iTunes, Napster, Rhapsody and MSN Music.
No advance will be paid to the artists profiled through the new scheme, however they will receive a straight profit share on all sales. Those artists that prove popular through the download-only programme will then likely get CD releases through the label.
The model is similar to that of a number of new music download sites, such as London-based Karma Download, although with a Universal sized marketing budget the new label might be able to secure its signings a much bigger audience than its smaller more established competitors