WARNER Music Group (WMG) is to begin releasing music by artists in “clusters” of three or four tracks rather than as whole albums, heralding the first big shift away from the record industry’s traditional business model.

Edgar Bronfman Jr, chairman and chief executive, yesterday revealed plans to create an “e-label” that would rely on digital downloads instead of compact discs that, if successful, would fundamentally change the way in which the record industry distributes music. The new business model will involve artists releasing batches of three or more tracks every few months, rather than producing an album every year or two. Initially, it will target artists that are either emerging or those that are past their prime but with a small number of dedicated fans.

“We want to experiment with any and all business models,” Mr Bronfman said. A spokesman for WMG, whose artists include Madonna and James Blunt, had no plans to stop selling big- budget studio albums. The yet-to-be-named label will be led by Jac Holzman, the legendary music executive who founded the iconic Elektra Records. Its launch is a response to falling sales of CDs, partly due to an explosion in music piracy in recent years, and the massive popularity of internet downloads, both legitimate and illegal.

Music companies have already dabbled in alternative formats such as double-sided and copy-protected discs, but WMG is the first to propose abandoning the album altogether.

The new e-label also offers a possible solution to delays in big releases, a problem for listed music companies, where delays can lead to revenue “slippage” and downgrades from market analysts. EMI was severely punished by the City this year when two major releases by Coldplay and Gorillaz were not released during the first half of the financial year, as expected.