Interesting new record label: Cordless

I don't have any musical talent, but I've always been interested in the music industry. Jac Holzman (who started Elektra, which released The Doors' first album) has a new record label that won't be releasing any physical CDs, but instead will rely on the internet as a distribution mechanism. This is apparently the first all digital label under one of the major record companies.  There's an article on C|Net's here on it, and the label itself has a website here The artists will keep rights to their music after a short exclusive contract. The release mechanism is apparently three songs groups rather than traditional twelve song albums. Is this a sign of a momentum shift in the industry?