Cordless Recordings, the digital-only record label started by Warner Music Group, officially took flight yesterday. (Read press release.) The label is the "brainchild" of Jac Holzman, founder and former CEO of Elektra and Nonesuch Records.

The label was started to discover and develop new artists in a "supportive, lower-risk environment." It plans to "make use of these digital resources to implement innovative marketing programs to promote its roster of artists." Rather than rely on the album and single formats, the label plans to release every few months a new cluster (group of three or more songs) by each artists. Frequent, smaller releases by artists make perfect sense for a digital label. Distribution costs are extremely low and marketing costs -- low as well -- are more related to the artist than the particular release.

Fans critical of industry practices will probably be glad to know the artists will retain ownership to their masters. The label will not pay for the production of the recordings, and artists will no receive advances. The difference then between Cordless and say, indie distributor CD Baby, would be the amount of marketing done by Cordless and its ability to secure mobile and ringtone deals not available to the independent artist.

How to make a profit? More thoughts after the jump, as well as some info on Cordless artists.

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