Who needs a record label?

If you haven’t heard of the Radiohead phenomenon yet, you have been living under a rock. After being fed up with the music industry, Radiohead released their album, In Rainbows, online. Listeners could download the album at their website for an optional fee. The band was interested to see how much people thought music was worth. Although the quality is much less than that of a CD, it was still a slap in the face for the industry. Radiohead still plans on releasing their album in stores in the form of a “discbox.” This discbox will contain a hardcover book, bonus CD of outtakes, and vinyl In Rainbows.

I think the initiative on Radiohead’s part has made a statement that will forever impact the music industry. This is one of those incidences that will be on a countdown on VH1 in ten years. Radiohead will probably have made as much money, if not more, from the optional-pay release online than if they had released it through a record label because of all the money the label takes from the profits. Most bands make their money from touring now. Unfortunately, only a band with such a large stature and following as Radiohead could successfully pull this gimmick off.

Nine Inch Nails commend Radiohead on their innovative plan and say that they would be willing to follow the trend. They have already left the Interscope label.

Madonna has decided to leave Warner Music. She has now signed with Live Nation, which is actually a concert promoter. I think it is great that large names like these are able to take a stand and go against the music industry.

Who buys CDs anymore?

Wal-Mart and Best Buy have decided to reduce the amount of floor space in their stores that is used for music. Wal-Mart is quoted to have said they may cut the floor space back even more in 2008, as much as 20 percent.

This cut back is a direct sign it is possible, like the record and the 8 track, the CD format of music is on the way out. Have you looked around the music aisles of stores lately? I can’t remember the last time a friend told me the latest CD they had bought. Wal-Mart, who Rolling Stones has reported to be the country’s largest music retailer, receives less than two percent of its total profits from the sale of music. Downloading music has become the new, preferred format of music. What does this new trend mean for the music industry?

Personally, I feel there is nothing like buying a CD of your favorite band or artists and looking at the artwork and lyrics the band has put so much time into selecting. When you download songs, you lose a little of the experience. But, being a poor college student, downloading songs is what I rely on the most now. If the music industry is going to survive at all, they are going to have to adapt their way of signing artists and distributing their music. Bands are also going to have to change the way they are distributing their music. There has not been a better, more opportune time for small bands to be able to spread their music without the recognition of huge corporations. While it is great the internet has provided these opportunities, it has also forced music stores to only stock the top, well known artists. How will small bands ever break into the market of chain retail stores?

“[Most of] the regional chains are gone. A lot of indie retailers are gone. The music industry put all their eggs in one basket, and that basket is walking away and abandoning the industry,” Rolling Stone quotes Don Van Cleave, the president of the Coalition of Independent Music Stores.

So, the CD is out. I am very interested to see how the music industry will try to control and still make money off of downloading songs.