A netlabel, also called online label, web label, mp3 label, distributes its music in digital formats on the web. It works like a classic record label with the only difference, that there are actually no hardware releases like vinyl or cd available.
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.
Current definition (2013)