The fate of the music industry ...

blacknapkins

... as told in the context of the release of the new Radiohead album:

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Monday, Oct. 01, 2007
Radiohead Says: Pay What You Want
By Josh Tyrangiel

Roughly 12,000 albums are released in an average year, so the announcement late Sunday night that the new Radiohead record, In Rainbows, will be out Oct. 10 is not itself big news. Sure, Radiohead is on a sustained run as the most interesting and innovative band in rock, but what makes In Rainbows important — easily the most important release in the recent history of the music business — are its record label and its retail price: there is none, and there is none.

In Rainbows will be released as a digital download available only via the band's web site, Radiohead.com. There's no label or distribution partner to cut into the band's profits — but then there may not be any profits. Drop In Rainbows' 15 songs into the on-line checkout basket and a question mark pops up where the price would normally be. Click it, and the prompt "It's Up To You" appears. Click again and it refreshes with the words "It's Really Up To You" — and really, it is. It's the first major album whose price is determined by what individual consumers want to pay for it. And it's perfectly acceptable to pay nothing at all.

Radiohead's contract with EMI/Capitol expired after its last record, Hail to the Thief, was released in 2003; shortly before the band started writing new songs, singer Thom Yorke told TIME, "I like the people at our record company, but the time is at hand when you have to ask why anyone needs one. And, yes, it probably would give us some perverse pleasure to say 'F___ you' to this decaying business model." On Sunday night, guitarist Jonny Greenwood took to Radiohead's Dead Air Space blog and nonchalantly announced, "Hello everyone. Well, the new album is finished, and it's coming out in 10 days. We've called it In Rainbows. Love from us all."

While many industry observers speculated that Radiohead might go off-label for its seventh album, it was presumed the band would at least rely on Apple's iTunes or United Kingdom-based online music store 7digital for distribution. Few suspected the band members had the ambition (or the server capacity) to put an album out on their own. The final decision was apparently made just a few weeks ago, and, when informed of the news on Sunday, several record executives admitted that, despite the rumors, they were stunned. "This feels like yet another death knell," emailed an A&R executive at a major European label. "If the best band in the world doesn't want a part of us, I'm not sure what's left for this business."

Labels can still be influential and profitable by focusing on younger acts that need their muscle to get radio play and placement in record stores — but only if the music itself remains a saleable commodity. "That's the interesting part of all this," says a producer who works primarily with American rap artists. "Radiohead is the best band in the world; if you can pay whatever you want for music by the best band in the world, why would you pay $13 dollars or $.99 cents for music by somebody less talented? Once you open that door and start giving music away legally, I'm not sure there's any going back."

The ramifications of Radiohead's pay-what-you-want experiment will take time to sort out, but for established artists at least, turning what was once their highest value asset — a much buzzed-about new album — into a loss leader may be the wave of the future. Even under the most lucrative record deals, the ones reserved for repeat, multi-platinum superstars, the artists can end up with less than 30% of overall sales revenue (which often is then split among several band members). Meanwhile, as record sales decline, the concert business is booming. In July, Prince gave away his album 3121 for free in the U.K. through the downmarket Mail on Sunday newspaper. At first he was ridiculed. Then he announced 21 consecutive London concert dates — and sold out every one of them.

Click to Print Find this article at:
http://www.time.com/time/arts/article/0,8599,1666973,00.html

meme

Can I listen to it first and then click back?

Or can I reply: well, 2,000 dollars if it's The Bends like, 2 dollars if it's Kid A like?



But really, that's very cool. Perhaps I'll just average out the quality of Radiohead records in the past... we are still in the hundreds of dollars

PJGARDEN

Cool move on their part!! I will definatley download it and I will pay for it.

somebodyelsessky2020

well it's worth a shot and innovative to say the least. i just have one problem with this article it states they are the best band in the world several times. now granted they are very good but. HELLO!!! PEARL JAM IS THE BEST BAND IN THE WORLD so please refrain from using best so freely, thank you.

DOSW

Holy buckets, that's nine days from now! I'm a little strapped for cash right now, but I'll be sure to give at least $5 or so.

That just made my day. I wonder what it's going to be like?

soulsinging

who was it that was reaming me for how downloading hurts artists so bad? sounds like radiohead isn't too concerned about it... lo and behold, the honor system works. and guess what? prince did the same thing.

fuck record companies. i'm happy to see them go down. now if only we can take out livenation or ticketmaster or whatever the fuck it's called now... an $18 ticket costing $32 after "convenience" charges is fucking ridiculous.

however, i do think this article is overstating the case. there were a lot of people in on this movement, including pearl jam (downloading shows and releasing wws through the website?). radiohead is just the first to use it for album release. this wave has been a long time coming. i just hope they find it enough of a success for the wave to sweep away all the shit record companies. i haven't really enjoyed a radiohead album since ok computer, but i may buy this just to show some support.

blacknapkins

somebodyelse'ssky wrote:

well it's worth a shot and innovative to say the least. i just have one problem with this article it states they are the best band in the world several times. now granted they are very good but. HELLO!!! PEARL JAM IS THE BEST BAND IN THE WORLD so please refrain from using best so freely, thank you.

I know, I thought of that, but in my mind there are two best bands in the world and it wouldn't be a very nice one without either one of them. With that in mind, I didn't take offense.

tybird

Not really a Radiohead fan....but this will be interesting to follow.

ashtrayrock

Good thread. Interesting read/concept.

I just paid $17 for a new release cd and I was miffed.

A digital download of a new cd is only worth $7(max), imho
A brand new cd release(with artwork & jewel case) is worth $10(max), imho

I would pay Radiohead the money, if I was a fan...

corduroy10

Here is another good article regarding Radiohead and the impact this may have on the industry:

http://lefsetz.com/wordpress/index.php/archives/2007/09/30/radiohead/

Radiohead
Radiohead In Rainbows

Is this real?

I’m standing in Gelson’s, shopping for dinner, and my BlackBerry starts to go wild. All with the above link. About a new Radiohead record.

Then I get in front of a computer and I read that there’s been a hoax. That the site purporting to count down to Radiohead’s release is fake. But now everybody is saying the story at the ABOVE link is REAL! That the new Radiohead album comes out in ten days and you can pay whatever you want. It’s even on the Record Of The Day site.

Huh?

I got a call from the AP just last week. Asking me what Radiohead would do. I said they’d use the English indie model. License the record to a major for a limited period of time for a ton of bread. You see majors OWN physical distribution. And that’s where the lion’s share of recorded music revenue still is, in CDs, at Best Buy/Wal-Mart and the other brick and mortars left. The majors can get the product in the store and you can get paid. They need the billing. You still can’t do it alone, even though it’s been thirty plus years since the Dead failed with "Wake Of The Flood". Hell, PEARL JAM made a deal with a major.

But what if they’re not? What if RADIOHEAD is giving the major labels the middle finger? What if they’re saying WE’RE RICH ENOUGH! That the Net allows you to go straight to your audience. FUCK the middleman who says he’s so necessary.

R.E.M. went for the cash They could have gone indie. Turns out re-signing with Warner was a good move, for they never sold tonnage again, despite getting PAID for selling tonnage. Springsteen went for the check. As did Neil Young.

But none of the foregoing acts are in their prime. They’re riding off into the sunset. They don’t have a hold on the younger generation. Boomers in Bimmers are the fans of these acts, none of whom can sell big numbers anyway. They’re all on victory lap tours, raking in the dough for retirement. Radiohead doesn’t have their dough…shouldn’t they be going for the CHECK?

Isn’t that the majors’ advantage, they’ve got the money, they can write the CHECK?

Who leaves money on the table. Certainly not the agents. They don’t want StubHub to steal a single dollar from their bottom line. Fuck image and credibility, THAT’S MY MONEY! I’m gonna make a deal with Cadillac. I’m gonna whore my product out on TV. Radio won’t play my music, I can’t get it on the Top Forty, MY HANDS ARE TIED!

It’s not like Radiohead’s living in a different world. But they’re playing by a different rule book. One that says the money flows from the music, that people have to believe in you, that you’ve got to treat them right.

Shit, you can barely get a ticket to a Radiohead show. The venues aren’t big and the demand is incredible. They’re doing it all wrong, don’t they see??

Well, obviously they don’t.

This is big news. This says the major labels are fucked. Untrustworthy with a worthless business model. Radiohead doesn’t seem to care if the music is free. Not that they believe it will be. Because believers will give you ALL THEIR MONEY!

This is the industry’s worst nightmare. Superstar band, THE superstar band, forging ahead by its own wits. Proving that others can too. And they will.

This is what happens when you sell twenty dollar CDs with one good track and sue your customers for trading P2P. This is what happens when you believe you’re ENTITLED to your business. This is what happens when music is a second-class citizen only interested in the bottom line.

There’s no testimonial to Jimmy Iovine on inrainbows.com. No thanks to Rick Rubin, never mind Lyor Cohen. Radiohead doesn’t need those stinkin’ badges. They’re THINKING FOR THEMSELVES!

What did that button say back in the sixties? "Question Authority"? That’s what Radiohead is doing here. They’re not holding back, saying their hands are tied, but are forging into the future.

You can’t make a TV show by yourself. Certainly not a movie. Not that anyone can see. But you can make a record all by your lonesome, it doesn’t cost that much. And you can say exactly what you want, you don’t need to clean it up for Wal-Mart. And, you can distribute it yourself online. That’s what Radiohead is doing.

Will they make a deal with a major for physical distribution? Will they do it themselves? Or will they leave ALL that money on the table? Shit, that would blow MY mind.

blacknapkins

corduroy10 wrote:

Here is another good article regarding Radiohead and the impact this may have on the industry:

http://lefsetz.com/wordpress/index.php/archives/2007/09/30/radiohead/

I really like to tone of this article ... and it's all true. The news last night really must have the execs in their boardrooms shaking in their boots today, and they deserve it.

The other thing is that Radiohead is putting out a record with substance. We've heard pretty much all of the songs and in my opinion, there isn't a bad one in the bunch. The excitement about this must feel really good to them.

Carlos D

I was watching a programme on tv last night on Sky Arts about Blues music and they talked of how the introduction of the radio led to music sales falling from 110 million to 10 million(may or may not be the right figure).Anywho,the point is I think the getting music from the internet thing is only a cycle not the definite future of music.
Personally I think it's horrible to download an album with no cover art,lyrics or the thrill of buying it and having it in your hands,call me old fashioned I guess.
I think they should release a physical and downloadable album just to keep everyone happy but on the plus side I think it's the record industry's own fault that these are the lengths artists are willing to go to keep their music special.