Radiohead's Sales Gambit

There are two threads here: One is the growing rebellion against iTunes' fixed pricing model and copy-restricted audio codec by bands and record labels. The other is the search for effective online sales channels to replace diminishing CD sales. See "An Album That Costs What You Want It To" in the New York Times:

The members of Radiohead, the respected British rock act, said that the band would sell its new album, at least initially, exclusively as a digital download and allow fans to decide how much to pay for it, if anything. In a statement yesterday, the band said it had begun taking orders for the album, “In Rainbows,” which will be available beginning Oct. 10.

Sounds like a great marketing gambit. Of course, buyers will pay what they consider a reasonable price for a good or service. Consider what constitutes the consumer's perception of musical value, however: popularity or scarcity, quality, media mentions/press, word of mouth, radio play, fan activity, concert experience. There are plenty of intangibles that affect what you'll pay, as evidenced by the posts on the New York Times page. Every band's experience will be different.

All media are affected by the Internet and the information/entertainment explosion. There is so much competition for our attention these days. It makes sense to try any and all new models (see the New York Times' failed two-year experiment with paid subscriptions to the website).

Heck, I might try it myself. I have a distribution deal with KOCH, but I also sell records at gigs, and frankly that's the quickest way for me to get money in my pocket so I can feed my kids.

This industry is changing, and the fact that heavyweights like Radiohead are opting out of traditional sales channels (or creating new ones) shows how massive the shakeup is.