The City Veins

As previously discussed on this here blog by Charles, Radiohead’s new album (available for download tomorrow) will be distributed on the Internet and fans can pay as much or as little as they want for it. I am beyond elated for this news, and not just because I love Radiohead (though I do). No, I’m excited because this album release could save the music industry as we know it. One day we’re very likely to look back on this innovative move as one of the single most influential days in music history.

Some background:

For those unfamiliar with the workings of the music industry, a recording artist typically gets between $1 - $1.50 for each physical CD they sell. On a $10 CD, that’s not a lot of money. Several things eat up the cost, but most of it goes to the record company and manufacturing/production costs. Until recently, these things were necessary to be successful; the record company in order to get your music to a wide audience and the CD because not enough people had taken to the idea of downloading before iTunes. Increasing Internet speeds have also eased people into downloading, since it can be done faster now.

Here’s why this is so important:

For an artist with an established, sizeable fan base, like Radiohead, record companies and physical CDs are no longer a necessity. Let’s assume that on average people pay between $2-3 dollars for the new Radiohead album; a fair assumption because it’s not a lot of money to spend on a whole album. In this case, consumers get their music for about 70% less, and Radiohead actually gets about double the amount of money per each album they sell (e.g., $2 compared to $1). Plus, they engender the good will of their fans, who will be more likely to buy tickets and merchandise now AND they get the freedom to make their music without a record company butting in.

This is what makes this release a potential game-changer: If Radiohead is successful at this model, what’s to stop other huge recording artists from doing the same thing when their contracts are up? Trent Reznor is already hinting that NIN might be next.

Given the creative freedom and the chance to make a greater profit, I think the better question is why the hell would any music star re-sign with a label after their contracts expire?

Imagine a world in which star after star left their recording labels and started recording on their own. The music industry would be radically changed. Ideally, this could be great for up-and-coming unknown bands. As the top talent leaves labels’ rosters, the labels would have to find and promote new blood - similar to the rebuilding phase that happens to sports teams when they let their overpriced superstars go. One of the great problems with the music industry today (IMHO) is that labels are not finding and nurturing enough new and exciting talent. Acts that do get signed are unoriginal and even then they are usually given one album to prove themselves. The luxury of your first record flopping (see: Nirvana, Tom Petty, Bruce Springsteen) doesn’t exist anymore. If the stars left the labels, it may spawn innovation because 1). labels will have to find bands with that “next” big musical idea and 2). labels will have to put more money and time into younger acts to make them the next superstars.*

Anyway, the possibilities opened up by Radiohead’s decision are endless. Anyone who loves music in any way should pay at least a few bucks for this album, whether you’re a Radiohead fan or not, because the success of new music as a whole could be directly to the success of this Radiohead album.

*Side note: Of course, with the shadiness of labels, they will probably just sign everyone to extremely lengthy contracts to ensure they squeeze out all they can before an act is so big it can more profitably sell directly to its fans. But if there’s a choice for a band to be signed to an albeit lengthy contract and get their music out to millions or to toil away in obscurity, this is not necessarily a bad thing for bands. Plus, if they do a good enough job building and keeping a fan base, then whenever they are free they should make a killing selling stuff online.