Love, others may follow Radiohead's no-label lead
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Rock band Radiohead's decision to  release its new album "In Rainbows" by itself -- online,  without a record label's help and at any price the user chose  -- rocked the industry last fall.
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Collectively, independent record labels are a sleeping giant waking up and demanding its due. Think many Davids versus a few Goliaths. Commentary by Eliot Van Buskirk.
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British rock band Radiohead scored its second No. 1 album on the U.S. pop charts on Wednesday with a release that was initially sold on the Internet under a revolutionary "name-your-own-price" system.
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At the Consumer Electronics Show this year, it&#39;s clear that consumers are making choices that are driving industry changes, and nowhere is that more evident than in the digital music business.Music industry and technology executives convened for the Billboard Digital Music Live conference Wednesday to talk about what those in the business need to do to meet the needs of music fans who appear to be running the show.&quot;2008 has to be the year we get real or the business as we know it goes away,&quot; said Fred Goldring, an entertainment attorney with Goldring Hertz &amp; Lichtenstein. He said that consumers will access music regardless of whether artists, labels, publishers, and digital music distributors approve of the means or receive money from the exchange.Since Napster turned the music industry on its ear in 2000, the digital-music business has been rocked by dissent among artists, labels, publishers, and the breed of technology companies distributing and selling music online that emerged in Napster&#39;s wake. All of these parties want to derive revenue from their contribution to the business, but have been arguing for years about how everyone should get paid.As this drama unfolds behind the scenes, consumers continue to find ways to bypass DRM and emerging revenue models to download and share music, making it not just impossible for the music industry to make money from traditional means, but also difficult to make money at all. In the meantime, artists have embarked on their own revolution, using social-networking sites and other online means to get their music directly in the hands of fans and finding other ways to derive revenue from their work.An example of the latter is the controversial and much-publicized move by U.K. rock band Radiohead to sell its new album &quot;In Rainbows&quot; direct to consumers without going through its record label or Apple&#39;s iTunes Store. The album first went on sale in October on Radiohead&#39;s Web site, allowing users to choose their price for the record; a few weeks ago, Radiohead released the record to iTunes and other retail channels.Scenarios like this will continue to happen, both among major-label artists and independent or unsigned artists. Whether they work is not the point; it&#39;s what the industry will do to work within these models and support them rather than continue to resist that will decide how the industry will fare in the future, said Terry McBride, CEO of Nettwerk Music Group. Nettwerk is a Canadian privately owned record label and artist management company.&quot;The corporate side of it has to shift,&quot; he said. &quot;The corporate people have not allowed us to do what we know we have to do. This is about the consumer, about monetizing their behavior and giving them choice. For all of the people that believe in controlling the&#160;[intellectual property]&#160;and how [the music] gets to consumers, the game is over. It was over seven or eight years ago, and soon your business will be over.&quot;Goldring suggested the industry focus on business models built solely around the networks that allow users to download music and find ways for everyone involved to make money that way.&quot;We have to stop trying to keep our old business alive&#160;... and figure out how to monetize the pipes [music files] are going through,&quot; he said.Barney Wragg, head of digital, EMI Music Group, said that in a perfect world, scenarios like the ones McBride and Goldring propose would exist. However, the needs of different artists vary, and there are still concerns about the integrity of their work and how they will be compensated for it as new business models emerge.&quot;I have artists that don&#39;t want to be involved in certain business models,&quot; he said. &quot;I have to balance those conflicts. ... There are a whole bunch of artists who are worried about how they&#39;re going to get paid, and what this is going to do about their representation or their art.&quot;Allowing their music to be distributed through ad-supported online music services is a particularly hard sell for artists who worry that having their work be associated with advertising &quot;devalues&quot; it, Wragg added.Subscription-based models such as Rhapsody that don&#39;t give users ownership of their music have struggled to take off. Wragg compared music fans&#39; view of subscription models to the early days of e-mail, when people wanted files to be stored locally and were adverse to the concept of e-mail existing only on a remote server.That concept changed over time, as will the perception of subscriptions if they are marketed to consumers in the right way, he said.Another factor that should boost the popularity of subscriptions in the future is the increased spending of younger fans who are naturally more comfortable with the idea of not owning their music, said Matthew DeFilippis, vice president of new media and technology for the American Society of Composers, Authors and Publishers, a membership organization representing the rights of artists.&quot;Ownership is a generational thing,&quot; he said. &quot;Even though kids today are buying from iTunes, I don&#39;t think they care about owning a thing. As they become the new generation of homeowners and bill payers, [music subscription] will be moving toward a cable [TV] model.&quot;
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Both Radiohead a former Talking Head have advice for young artists on navigating the chaotic music industry.
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Radiohead have the UK's number one album, three months after In Rainbows was offered for free online.
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The music industry is using alternative routes to get new music heard, such as music blogs and 'viral marketing.'
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Having a No. 1 album just isnât what it used to be. This week Alicia Keys is back atop the Billboard chart with âAs I Amâ (J), but the 61,000 copies it has sold is barely above the historic low for a No. 1 album, Nielsen SoundScan reported. The âJunoâ soundtrack, on Rhino, fell to No. 2, with 55,000 sold. New releases dot the chart this week. The Mars Volta, which revels in head-spinningly complex progressive rock, opened in the third spot with 54,000 sales of âFrances the Muteâ (Universal); the Welsh heavy metal band Bullet for My Valentine reached fourth place with âScream Aim Fireâ (Jive), selling 53,000; and the â2008 Grammy Nomineesâ compilation (Hip-O/Universal) moved 50,000, opening at No. 5. The remix album âHannah Montana 2: Non-Stop Dance Partyâ (Disney) bowed at No. 7, and Vampire Weekend, the acclaimed New York indie band, reached No. 17 with its self-titled debut on the XL label.
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A British band has funded its first  album entirely via a new Web site which allows up-and-coming  acts to bypass record labels and gives fans the chance to buy  into their success.
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Radiohead top the US album chart with In Rainbows, initially sold via the internet for a price chosen by fans.
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Record labels need the digital  music market to take off. So why aren't they helping it any?
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NEW YORK (Billboard) - English rock band Radiohead will perform its new album, "In Rainbows," in its entirety during a pre-taped, hour-long set that will premiere New Year's Eve on TV and the Internet.
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In 1996, the Internet was a curiosity for most, the record labels were swollen with cash from CD sales, and R.E.M.'s "New Adventures in Hi-Fi" could only add to that hoard. Critics and fans drooled for the alt-rockers' follow-up to their last two hit albums, and the media counted down the days until the CD hit stores in September of that year.
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Several weeks after Radiohead's digital release of its seventh studio album, "In Rainbows," aftershocks are still reverberating though the music industry.
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At a time when the viability of  many record companies seems less than certain, three new labels  are launching in the Christian community.
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By Eric R. Danton, The Hartford Courant, Conn.  Feb. 15--These are inspirational times for indie-rock bands, who are combining grass-roots efforts with technology to get their music heard without help from record labels.
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All the labels are on the MP3 bandwagon, but it's not a road to nowhere.