Radiohead challenges recording industry

By now you've heard that Radiohead is offering its new album via download on a price-it-yourself model. Radiohead is the most prominent band to offer digital music this way, but it's not the first. Jane Siberry started doing this in 2005.

Music industry analyst Bob Lefsetz was floored when he heard about Radiohead's move. In fact, he thought it was a hoax. Here's my interview with Lefsetz:

LEFSETZ: It took me like a half hour to realize, yeah, it's really true.

wavLength: What's the significance of Radiohead's price-it-yourself plan? They've been telling us

LEFSETZ: Radiohead was built on the backs of the major labels and MTV, etc. What it really does is prove that everything they've been telling us may not be true. They've been telling us they must preserve the CD pricing model of at least a dollar per track ... and here's a band saying, 'No, you must be in bed with your fans.' You cannot be suing them ... it's about treating people right. So it's basically undercutting their arguments.

wavLength: What kind of risk is this customer-priced model for Radiohead?

LEFSETZ: It seems that Radiohead is leaving a lot of money on the table. Is that a crime? We've seen with Pearl Jam that the better you treat your fans the longer your career. Dave Matthews Band will only charge in the neighborhood of $50 for a concert ticket. They can still sell out arenas. This has lengthened their careers. But it's not about the money. It's about the music.

wavLength: Will other bands try self-determined pricing?

LEFSETZ: I think this pricing model is almost in effect! Because now the music is free - you can just go to a P2P site. So what Radiohead is saying to their fans is, "What do YOU think this is worth?"

wavLength: Doesn't Radiohead run the risk of appealing to people's baser instincts as consumers, who will just take advantage of self-pricing?

LEFSETZ: Well, again, they're already getting music for free ... The thing that's fascinating with Radiohead is they didn't listen to the conventional wisdom ... They were willing to experiment ... so regardless of the money they generate from this, it is ultimately good for their career.

Radiohead may not be the first to try this, but they will be remembered as the band that began this particular paradigm shift. I've never actually heard any of their music, but I'm more than a little inclined to buy their new album just to make a point. I've avoided purchasing music from the major labels for several years now, due to their misguided litigation tactics. It's good to see that some of the bands took notice.

I'm finally willing to say it; the future of music is here.