What Are Rainbows Worth?

Radiohead's seventh album, In Rainbows, comes out this month, and the band has opted to get a little unorthodox with their business model. Physical copies of the album don't become available until early December, but the songs are available for download beginning Oct. 10. The kicker: you get to decide how much you want to pay. Really. That's right, set your own price. No kidding!

Following the release of their last album, 2003's Hail to the Theif, Radiohead satisfied the terms of their multi-album contract with Capitol/EMI. Rather than negotiate a new one, they have opted to go sans label (so to speak). Despite Radiohead's resources and die-hard following, this was a bold move in an industry dominated by monopoly powers. This pricing scheme is probably their best bet to succeed as an 'independent,' and their success will be a great thing for music lovers in general.

Radiohead has two things it needs to accomplish: 1) make money from sales of the album and 2) get their music out there so that people will come to see them play live.

They don't have the benefit of a label paying to get their songs on the radio. (Oh, did you think that was illegal? That's cute.) So they need to make it inexpensive for new fans to get access to the music. Old, die-hard, must-get-my-Radiohead-fix fans like myself are more likely to pay a fair price (I'm thinking 9 Pounds). Also, we're suckers for the hard-copy which is just tailored made for us suckers. It includes: the CD, two 12in. vinyl records, album art, lyrics, and a bonus CD with b-sides. Price: 40 Pounds Sterling! That's $82! Did I mention we were suckers?

Anyway, Radiohead is resorting to price discrimination. It sounds bad, but it isn't because this is voluntary price discrimination. Its bizarre, but it is the smartest thing they could do.

They are going to get a bunch of new fans to listen for cheap and perhaps buy concert tickets, while squeezing every dime out of us old-timers (who will also buy tickets). Plus, the fervor around this just might get their stuff on the radio without having to pay.

That last bit is the best. Record labels have had a deadlock on airplay for years now. It is the only service they actually provide to a band, that a band can't get done themselves. Hopefully Radiohead is paving the way for a lot of other bands, new and old, to cut out the middle-man and open up the marketplace of music.

I'm just so excited, I can hardly wait. Coming soon: The Martian Cat Problem Experience... From Space! We're gonna be the best band ever!