Radiohead's "In Rainbows" album is the music industries perfect loss-leader
In October 2007 Radiohead did the unthinkable with the release of its seventh studio album In Rainbows. The band, which severed ties with EMI/Capitol Records after the release of their 2003 album Hail to the Thief, released their latest album for digital download with a “pay what you want” system.
Radiohead was well aware of the risk involved as some would simply elect to pay nothing for the band’s album (many did just that). This did not stop the band in what TIME magazine dubbed “the most important in recent history for the music business.
As many are well aware record sales have been declining for years due to technological advances that allow many consumers to download pirated versions of albums for free. It is unclear at this point what the ramifications of Radiohead’s drastic leap of faith will be.
However it is important to note that this could be the trend for bands that are already well established.
Record labels are important for new bands simply
because labels have more push when it comes to airplay and promotion
than a small unheard of band. For established bands record labels do
not play as big a role as the bands are seemingly able to sell
themselves. Radiohead, who sold over 120,000 physical copies of In
Rainbows in the first week despite its digital release a week prior,
may have opened the door for big bands to recoup some of their losses
from pirated music.
Pearl Jam is rumored to be considering following in Radiohead’s footsteps for their upcoming as of yet untitled 9th studio album. Pearl Jam, who at one time was the biggest band on the planet and has much more pull than Radiohead, could influence other bands to follow Radiohead’s model. While it is hard to determine how lucrative Radiohead’s “pay what you want” policy was for them, it is certain that there are many large bands who could profit off of this model. There is potential for this to become a trend in the music business.


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