Radiohead embraces the digital age

What is content, what is value and how do we define it?

Richard Wachman writing in the Observer Business/Media section asks is the bell tolling for the recorded musinc industry?

Even more revolutionary, the group is asking fans to decide how much to pay for 'In Rainbows', available for download from Wednesday. A spokesman for Radiohead says: 'As you might imagine, offers are ranging from nothing to more than you might pay for a CD in the shops.'

Personally I am a huge Radiohead fan, The Bends, OK Computer, well in fact all their material has kept my neurons humming since seeing them play in Helsinki in 1995.

And of course Prince released his latest CD for free, as Prince knows that today, the most valuable asset he has is "Prince in Person".

Once again, the economics of the music industry is being turned on its head as artists take matters into their own hands. Haven't we already seen Prince sell 3m copies of his new album via a deal with the Mail on Sunday during the summer? Lily Allen - Arctic Monkeys and countless others have launched themselves via email or social networking sites such as MySpace.

So is it all doom and gloom for the music industry? Mulligan says:

Many artists want a record deal. What the net has done is allow new people to be recognised, but once established they don't want the hassle of marketing and distribution, which are the core strengths of the companies. At the other end of the spectrum, established groups such as Radiohead, which have been around for years, have a loyal fan base and can exploit the internet for their own advantage.

The Observer reports

But it's not a zero sum game. Radiohead's new album will still be launched conventionally in the new year. The group are talking to a number of labels. Chris Hufford, Radiohead's manager, says the website launch is just 'another way of doing things'.

But Chris Parry, founder of Fiction records, says that the industry is undergoing a seismic shift. 'The music companies used to have a monopoly when it came to finding new talent and distributing songs. Now artists such as Radiohead are beginning to challenge the status quo. New technology has subverted the way the majors used to do business. The balance of power has shifted from the companies to the fans and artists.'

So for example, check out Artists First The global platform for the new music business. Artists First - a small revolution in music file distribution

Sell albums (physical and digital), exclusive content, realtones, video and merchandise directly to your customers from any website.In the early years of the internet there were hurdles... But with web 2.0 technology these obstacles are a thing of the past. Now you - the artist or label can manage every one of these processes from one simple, web based tool hugely increasing your margins. The platform is completely free to use. You pay just 5% per transaction when you sell something - why wouldn't you?

Why wouldn't you? and perhaps 2005 was the year music broke free from the stranglehold of the corporation and we see well under way – Promonet is a new promotional music distribution network for IODA - the independent online distribution alliance. IODA is the leading digital distributor of independent music, helping over 750 labels of all sizes and style distribute their music to digital music stores all over the world. And Digital Freedom and the future of vinyl recordings

Back to the Observer article

Analysts say that a hybrid system of music distribution is emerging, one that is becoming increasingly innovative. A fortnight ago, a scheme began in the US which allows iPod owners to download songs they hear over the speakers at Starbucks coffee houses directly onto their device. The price? Just 99 cents.

The music companies know they have to adapt, like other industries, if they are to survive in the digital world, where the cost of selling online is essentially zero. But how they do it, profitably, is by no means clear.

But we do know that music retailing is feeling the pain of the digital revolution

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Comments

[paul]

I'm loving Radiohead's latest piece of digital / fan engagement marketing - radioheadremix.com