Radiohead's Internet-only Release of In Rainbows

In 2007, the British superstar group Radiohead released their album, 'In Rainbows' to the general public on the Internet. The staggered release--which allowed users to name a price and download the ten song album in a zip file--sent shock waves through the music industry. And, the success of the technique may have changed the way business is conducted in the future.

Initially, the non-traditional release garnered serious criticism from artists and record companies alike. Contract-based releases had never been questioned. Companies make money through directed marketing of an album, its pre-release, and the number of highly sellable single tracks promoted to major radio outlets. This type of release was risky, and many in the industry were terrified of the implications.

Radiohead's contract with EMI expired in 2003 with their release of 'Hail to the Thief.' The band began work on 'In Rainbows' in 2004 without clear company direction, and leaks soon alerted the music community of their possible intention to electronically release the new album.

In addition to receiving rave reviews, 'In Rainbows' outsold 'Hail to the Thief.' With the average price of four pounds offered, the release skyrocketed to the top of the charts. In total, roughly 1.2 million copies of the album have sold.

What does this new type of release mean for the record companies and musicians? Granted, Radiohead is an internationally acclaimed group with an influence stretching further than many, many successful musical groups. However, the Internet revolution has already worked for many fledgling groups across the globe. With the advent of MySpace music and YouTube, aspiring artists have drawn an audience and contracted musicians have expanded their base.

Radiohead's jump into the electronic community has sparked musicians to do the same. Physical releases are already a fairly outdated form of distribution. The growing popularity of Mp3 files and iTunes suggests an audience moving away from clunky CD cases, preferring the convenience and speed of music on demand.

The demise of music production and distribution companies is not imminent; rather, they are going through a reinvention process. Similar to the way in which video stores like Blockbuster adapted to the popularity of electronically-based entertainment, so are these music companies changing their approach to the fickleness and savvy customer. Radiohead's successful release simply pushed the envelope and forced these entities to seriously evolve to the changing market.