Earlier this year, I did a blog entry looking at the fate of the record industry, a sector that is paying the price of not having kept up with the changes transforming the music scene. Last week, Radiohead broke new ground by launching their album online. What makes that so interesting is the way the band took matters into its own hands.
There had been no pre-publicity for the album, most people were expecting it to be released next year and secondly the band made the album available in various formats including internet download. And the most interesting part about the download is that Radiohead let the fans decide how much they want to pay. Now you can say that's not a way to make truckloads of money.
But the more interesting question is what it means for the record industry. As The Economist pointed out, it could spell the end of Digital Rights Management and force record companies to change their business models so that they are not just focusing on the songs. Madonna might be showing the way.
Her new deal gives the company the right to promote concert tours, sell merchandise and license her name, on top of the rights to albums. So does all this spell the end of big record labels? No-one knows for sure although as James Montgomery points out at mtv.
com , the pop and hi-hop acts need the back-up of the major labels to ensure sales. So the record labels are not dead yet. But it doesn't look good.
Also, chances are is that this will make artists more selective when it comes to signing up. Still, the bottom line remains the same: can you actually make money selling music online? Where do you see the music industry heading?
How much music do you listen to, and how do you access it? Can you make money from it online? What can the music industry do to save itself?
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