It’s been an interesting few weeks in the music business.
Firstly, Radiohead announced that they were accepting pre-orders for a download version of their new album, In Rainbows. The interesting thing is that they are allowing the purchaser to set the price they are willing to pay, from nothing on up (plus a small processing fee). Their spokesperson came out a few days later and said that most people were paying an amount "similar to what would be charged at a retailer", and not just pinching it for free. I have no idea if that’s true or not. If I were a cynical person I’d say it sounds like something a spokesperson for the band would say regardless. Another explanation might be that so far it has been self selecting, as the folks who are pre-ordering are possibly hardcore fans rather than casual listeners, and are more disposed to giving one of their favourite bands some money.
All that aside, interesting move.
Then, Trent Reznor, who for all intents and purposes is Nine Inch Nails, announced that he has fulfilled the obligations of his contract, and is now effectively without a record label. He’s more than hinted at the fact that he may not be looking for another one anytime soon, as he is now "able to finally have a direct relationship with the audience as I see fit and appropriate."
Of course, this has sparked the expected "We don’t need no stinkin record companies anymore!" articles, which probably overstate the situation. All this has really shown us is that established artists probably can now more easily do without some of the support of their labels.
But I think it’s a mistake to assume to much about what this means for artists who are just starting out. Even in this age of social networked everything, for the most part record companies are still going to be the source of most of the marketing clout that artists will need to get noticed. Sure, there are artists like Clap Your Hands Say Yeah who have proven quite successful at breaking through without label support, but I suspect these are the same type of people who would have had the drive and smarts to do this anyway. These are the same types of folks who 15 or 20 years ago were selling demo tapes and then CD’s at their gigs as a way of building some momentum, who were smart enough to be engaging with local street press and promoters, etc. The available avenues of promotion may have expanded., but just as back then, the number who actually succeed will be small compared to the number who are trying.
For a band to really become successful, they’ll still need good marketing. For them to embark on a tour of any significant size, they’ll need logistical support. Well, the people who currently do that are, for the most part, probably going to be those who’ll continue doing it. Record Labels.
As much as I’d like to be wrong, I don’t think this is going to fundamentally change the music industry.
However, all of this is going on at the same time that many are pronouncing the "Death of DRM", with Amazon opening their DRM-free music store, Microsoft announcing the new Zune store will be DRM-free, and even Apple making some DRM-free tracks available on ITunes. So while I don’t think we’re witnessing a massive shake up, I am optimistic that we might finally see the record industry dealing with the realities of how people consume music today, rather than simply railing against it.
And yes, I did pre-order the Radiohead album, and yes, I did pay for it.