Commentary: Following Radiohead's Lead - Consequences of a New Business Model

Two weeks ago, everyone was ga-ga over Radiohead's bold move to raise a mighty middle finger to the major labels and independently release In Rainbows. Even more bold - the band's decision to allow fans to set their own price. Because news travels fast, and business models adapt faster than ever, it didn't take long before others followed suit. Trent Reznor announced his plans to stay a free agent, while a record he produced will receive a release treatment similar to Radiohead's. Out today, Saul Williams The Inevitable Rise and Liberation of NiggyTardust! is available for free or a $5 "contribution." As Pitchfork reported last week, those who pay have "their choice of DRM-free 192kbps or 320kbps mp3s, or the giant, uncompressed FLAC (Free Lossless Audio Codec) format. If you're a bit light at the moment, Saul's got you, though you cheapskates will have to settle for 192kbps mp3s."

Of the approach, Reznor said, "There are obvious similarities in how Radiohead just released their new record and the way we've chosen to. After thinking about this way too much, I feel we've improved upon their idea in a few profound ways that benefit the consumer."

First, what I like about this model is the "trust factor." In the heyday of file-sharing (which I believe we are still on) the popular defense for one's illegal downloading habits was the fact that the artist would probably not see much of the CD sales anyway. No, those would go to the evil major label - and who cares about stealing from them? With their absurb lawsuits against alleged file-shares, these major labels have done little to shed their red devil horn image. In contrast, Radiohead and Saul are clearly "not evil." By ensuring the availability of their music to virtually everyone, a level of trust is built between artist and fan, thus increasing the liklihood of a fan to, say, buy a t-shirt or an expensive concert ticket.

On the opposing side of the "trust factor" would be Billy Corgan. When Corgan "reunited" the Smashing Pumpkins, he cut deals with major chain stores (who sell CDs at a loss), giving each a copy of Zeitgeist with a different exclusive track. If fans wanted to obtain each song legally, they would in turn have to buy each copy of the album.

(It should be noted hear that the real loser in all of this is the independent record store - though that is cause for a separate essay).

All praise for these daring artists aside, such an action is not without consequences. What frightens me most about the current state of the music industry is not illegal downloading - but rather what appears to be the mirror image of the American economic structure. The musically rich are getting richer, the musical poor are getting poorer (and more abundant), while the musical middle class ceases to exist. Here is how I see it: Radiohead and Trent Reznor represent the upper middle class. They not only survive off their art, they no longer need actually CD sales to sustain their career. In fact, the CD is more of a means to an end - a promotional item for something larger, like a tour. In the lower upper class would be the bands who recently ascended from ranks of indie Gods (Death Cab For Cutie, Arcade Fire, the Shins, Spoon, the Decemberists, Modest Mouse) to serious major label support, Saturday Night Live appearances, television and movie soundtracks, and commercial placement.

Just a few years ago, these acts probably still maintained day jobs, and spread their name through rigorous touring schedules. Now, they've become mainstream. But if you were hoping for a bit of Reaganomics, the trickle has yet to make its way down to the next generation of indie would-be-stars. The aforementioned artists would receive a good deal of attention from Letterman, Rolling Stone, Pitchfork, Stereogum, college radio and corporate radio alike, leaving less space for the actual underplayed artist.

There was a time when bands left behind a model one could try and follow, but now that model has turned into "get your song on TV or bust." It's an exciting time for music, but also a painfully difficult one. The Radiohead model creates a template for other acts of the same caliber to adopt, but does not create a reasonable one for younger acts. On the otherhand, Saul Williams is nowhere near as recognizable a name as Radiohead, so what this model does for him may prove more interesting when discussing the future of our business.