What does the Radiohead release today mean for the future of the music industry?
posted October 10, 2007, 3:32 pm | Log In To Post Comments |
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Tags: Radiohead, Nine Inch Nails, Oasis, Justin Timberlake, In Rainbows, music industry, albums, sales, labels
With the release of Radiohead's In Rainbows today there is a new air of defeat in the music industry. For years the big labels like Warner, Sony, EMI and Universal have been trying to get ahead of the game with digital downloads but have not been able to tame the beast that is P2P file sharing. Radiohead has just delivered the answer: Pay what you want. Take it for free but at least we now know how many copies have legitimately been downloaded. It's brilliant! Some fans will pay top dollar, many will take it for free but regardless Radiohead knows about EVERY download from their site. There is no need to borrow it from a friend, just go to their site to download it for free.
Now where does a big label like Universal turn to here? And for that matter what future do digitial download sites such as iTunes and Amazon have with such a model? It is rumored that Nine Inch Nails and Oasis are going to be next to do something similar. And I'm sure as other band's contracts expire with the evil labels they will do much the same. So does that leave Universal to craft crappy pop acts only to let the lapse from their contract to leave fulfillment up to their own? The next move in this industry takeover has to be one of those big pop acts. I'd love to see someone like Justin Timberlake jump on board the self-release, self-fulfillment/delivery side of things.
I think that the labels and management companies are going to start to farm this work out. If you were to start up a company that would create band sites, complete with the ecommerce functionality like W.A.S.T.E. did for Radiohead you would have a lucrative business here. The CD is about to die. I don't care how much you like looking at liner notes, the CD is about to die.
I'm open to argument here. What doe you think is going to happen to the industry? Is the crumbling going to continue? Is there any trust to be had in labels any more?
Comments:
I agree with you Schmitty, the main focus of a band should be getting fans, any way, any how. Don't let price be a limitation. If I like a band, I might buy a shirt, I might go to their show next time in town. AND, if I have become a fan, I might pay more for the album that I downloaded for free, paying the band back for the good times I had with their last album. I also think that there are some tweaks that need to happen but for the most part Radiohead's release has been successful. It will be interesting to see if Oasis and Nine Inch Nails follow their example.
posted on October 18, 2007, 2:08 pm
I don't know if this model will work (I cynically think it won't, it needs more tweaks) but I optimistically hope that it does. I hate big labels, if only because their solution to the digital download age is to sue people. Yeah, real clever. I think this model will work (even if a little different from Radiohead's version) because it will work for every band, indie or mega like Radiohead. Here's why: Let's say me, Average Joe Music Listener, stumbles across a pretty good indie band on MySpace. I like the 3 songs I hear, and want to get their CD. Naturally, because they're indie and low-key, I can't find them on Torrent sites where I would techinically steal tunes for free. They're on Amazon, but I don't know if I like them enough to pay $10 or $15 for their CD. I have to pay rent afterall (or whatever, insert reoccuring financial commitment that outweighs music by a little here). BUT if they have a system like Radiohead, I can get their music for free, or for a $1, and suddenly I'm listening to their music WHERE I WOULDN'T HAVE BEFORE. They may not get much profit from my cheap purchase, but they've gained a new listener at no cost to them (distributing digital files isn't exactly as expensive as pressing CDs). If I like them, maybe I'll go see them live next time they come to my town (and live shows are the only area of the music business that is doing well), or pay more for their next CD (or fork over $40 for a box set). Whatever the case, the point is (like Dennis so wonderfully put it) controlled spreading of music. It may not bring in enough profits as signing on to a label (although with the business spiralling down as it is, perhaps even that statement is arguable), but it's a method that could work for smaller bands--not just the giants who don't need to worry about profits like Radiohead. I'm excited for the death of the CD and the death of the traditional big-time label. I always wondered what it was like to live through that transitional period of vinyl to cassette (or 8-track), and cassette to CD. This will blow all those transitions away I think, and I'm excited to see what comes next. Thank you Radiohead.
posted on October 17, 2007, 11:38 pm
The big labels have always had the upper hand. I mean, just look at how royalties are calulated. Of course Radiohead have had the luxury of being one of the biggest bands in the world, but for a tonne of smaller bands, the royalties are minimal on the big labels.
Though its a big step for Radiohead, and in agreement with Dennis that the CD is dying, I do believe that DIY ecommerce is robbing the big four of money already. I mean, it's very cheap to set up a merch store online and manage it by yourself or through an indie label. Basically, we're coming to a situation where the bands are becoming the decision makers and not contracts or deadlines.
posted on October 16, 2007, 4:46 am
I absolutely love the benchmark this could be for bands. It opens a more personal relationship between the bands and the fans, and it all but eliminates observing P2P as a hazard to the business of music. If people want to pay nothing, they can pay nothing. But if they complain when their favorite bands don't make it to their town on tour or lack the funds to continue making music in the future, well they can look back and say "maybe it wouldn't have hurt to give them something for what they gave me". The implications this move has on the record industry are small so long as it's only a few fishes in the sea taking a stand. We need more heavily-popular bands and artists to jump on board, and eventually it might create a real long-lasting change. I sure hope it does, because CDs really are dying and the industry is suffering for it.
posted on October 10, 2007, 5:34 pm


