“Know Your Rights! Give It Away Strategically” by Roland Tanglao

“If I die tomorrow, I’ll be happy that we didn’t carry on working within this huge industry that we don’t feel any connection with.”1 Thom Yorke, guitarist and lead singer, Radiohead

Despite years of declining CD sales and an industry revolution brewing on the Web, the big four somehow managed to pretend everything was business as usual during the first several years of the 21st century. But in October of 2007, several months after leaving big four label EMI, Radiohead made a gesture the record labels couldn’t ignore. After several platinum albums2, the band struck out on their own, releasing their seventh album In Rainbows online, allowing listeners to pay what they wanted to. Listeners were able to download the album directly from a Web site, and pay anywhere from £ 99.99 down to nothing at all.3 The media went crazy; journalists, fans and bloggers began to speculate as to what it meant when one of the biggest bands of the world offered to give their album away.

If the last chapter was meant to describe the way the Internet is a diverse community working together to create a buzz, Radiohead is an example of how that buzz can spread like an epidemic. Renowned blogger Bob Lefsetz commented on the revolutionary trend that Radiohead may have started, describing how the band was using the album to say, “We’re rich enough! … The net allows you to go straight to your audience. Fuck the middleman who says he’s so necessary!”4

Radiohead’s release was a hot topic being written about in rock magazines, but the freedom of speech nature of the Internet provided a place for anyone and everyone to chime in. As a creator of a successful fan group on Facebook entitled “I’d rather listen to Radiohead than actually get head,” Ryan Hutchins was right in the middle of the buzz. Hutchins said he had created several Facebook groups in the past, but that the Radiohead one was the only one to gain hundreds of users, most of whom Hutchins did not know personally. Radiohead buzz swamped Myspace, Facebook, message boards and more, providing an example of the previously unheard of things that artists can now do using the Internet.

“I think in some ways it’s inevitable, not that [music] would be free, but that you’re going to give fans some freedom in what to pay you. Music is so easy to steal now that the relationship between a band and a consumer is changing. If I was playing in a band right now, one thing I would figure out is how to build a large enough fan base to support me, not pay me 20 bucks for a CD, but enough to pay 3 or 4 dollars on a CD and see me live.” Tim Westergren, founder of Pandora

Westergren brings up an interesting point. At a time when nearly any song can be freely downloaded by the masses illegally, it would be irrational for an artist to believe they could still sell the same amount of albums for the same price they did before the advent of the Web. Lead singer and guitarist of Radiohead Thom Yorke. Public Domain imageHowever, if an artist realizes the power that listeners hold, they can give listeners an opportunity to essentially donate directly to the bands they love without the bulk of it going to executives. Hutchins, an avid Radiohead fan, said he was excited when he heard about the “pay what you want” formula, as it “forced people to make a moral choice about how much their music is worth.” In a sense, Radiohead was giving its music away to those who would take it anyway, and giving back to their loyal fans in hopes that they would continue to support the band. It’s a public relations dream come true, but at the end of the day, can it really put food on a musician’s plate?

It has now been several months since the release of In Rainbows, and the hype has gradually been tapering off. And although the album made sure Radiohead was plastered on media publications, there was an air of legitimate skepticism as to whether the “pay what you want” method of sales could ever really be a success. A late February Rolling Stone follow up to the In Rainbows phenomenon showed that there actually could be a future in the “pay what you want” distribution method for some bands. According to the magazine, only two out of five listeners paid to download the album, but those who did pay spent around $6 for the album.5 This means that on average, the band made about $2.26 per album, and although that amount doesn’t sound like much, it’s more than they would have made selling the album for retail price through a major label.6

A phenomenon developed where those who would steal the album anyway, downloaded it for free, and those who would have bought it gave the band their commission without having to pay major label executives in the process. The moral choice Hutchins spoke of was enough for many listeners to support a band they respect financially. Hutchins himself said he not only paid $8 to download the album, but he also bought a special edition disc box of the album for $80. Hutchins hasn’t opened the disc box, as he said he thinks it will be a collector’s item some day.

Major labels try to portray actions like those of Radiohead as bad for business, and it is true that In Rainbows generated less money, as 3 out of every 5 of its listeners downloaded the album for free.7 But

the music itself is still being listened to, and the band is making more money than ever, it is only the now less necessary label executives who are losing out. It is worth noting that few bands are actually established enough to be in a position to benefit from a move like Radiohead’s, but the band’s behavior should be taken as a signal that the conventional CD distribution method of a studio album is no longer a product that can be relied upon as a money maker.

“I don’t know how a band can give their music away. I have to live, I have to eat and I have children to feed. We’re making most of our money playing live concerts. I would never bank off making money on a studio album. For a band like RAQ, we make our bread and butter off touring, and an album is almost like a vehicle for touring. It’s a reason to tour.” Todd Stoops, lead singer and keyboardist, RAQ

With all of the benefits that the Internet provides for independent artists to self promote, it is also the primary source of bootlegging music. This means that independent artists will have to find creative ways to generate enough profit to keep going without relying on album sales. Any money made on albums is obviously a plus for independent acts, but as Stoops noted, a new album can primarily function as a reason to tour. Stoops said he is excited that fans are downloading his music, but that for independent artists, touring is where the real money is to be made.

Other groups around the independent music scene seem to be gearing their effort toward touring as well, such as Beninghof, who said the next Old Silver Band album will be released as solely as a free online download for fans. Beninghof said the live show has always been the highlight of Old Silver Band. The group’s live show at Club Metronome in Burlington on February 15th was filled with humorous banter, popular covers, and crowd interaction such as giving away magic hat condoms, that simply cannot be captured on a studio album. The band, primarily a duo, have even added a drummer to their live show to draw a bigger crowd.

“We didn’t feel our last studio album, it didn’t really encompass our live show. This time we’re going to record a live album in a controlled setting. We’re basically going to have an all day cookout and jam session, and when we’re done instead of selling it we’re just going to give it away and see how many people we can get to download this album. We’re going to go on Facebook and Myspace and let people know that we’re giving it away just to say thank you and get a tally of how many people listen to what we’re doing. For us, we ended up giving so many of our last album to family and friends anyway, and with the current change and trends, I’d rather have someone be listening and talking about it than worrying how many albums we sold.” John Beninghof, vocalist and guitarist, Old Silver Band

So with albums being downloaded for free, many independent acts are realizing they can earn some brownie points by offering to give away what Internet users will download for free anyway. Stoops pointed out that even if a listener does download a song for free, they might play that song for five other people, who might in turn go to a show or buy merchandise. Westergren and Beninghof also agreed that the key for bands these days isn’t to sell albums, but to build a respectful fan base that will be willing to support the band through touring and merchandise.

Lead singer and keyboardist Todd Stoops of RAQ performs at Pearl Street Ballroom in Northampton, Mass. on November 9, 2007.

And just as respected bands like Radiohead can get money for an album they offer for free, they will be reimbursed if they can put on an entertaining live show. To further use the example of Hutchins, it is worth shedding light on the “pain in the ass” he put up with to get Radiohead tickets two nights in a row on their 2006 summer tour.

Radiohead played the shows Hutchins saw in the Bank of America Pavillion in Boston, Mass. The Pavillion is a venue that holds approximately 5,000 fans, a far smaller venue than the stadiums Radiohead has filled in the past. Hutchins said he tried to get tickets the second they went on sale, but they instantly sold out and he only got tickets for the first night. He said he bought tickets for the second night on Ebay with a $100 markup. Obviously not every fan is as dedicated as Hutchins, but the fact that tickets sold out so quickly shows just how willing music fans are to spend money on an entertaining live show, and to continue to see shows down the line. Despite the tedious process Hutchins went through in 2006, he says he’ll definitely do it all over again to see Radiohead tour in the summer of 2008. So although album sales continue to drop, touring is still a thriving entertainment enterprise8, and independent artists are planning accordingly.

Final Thoughts

With album sales plummeting, self promotion via the Web on the rise, and touring becoming an even bigger staple for artists making a living, the future is still uncertain. But no matter what the future holds, one constant will remain in the music industry: change. In 1964, Bob Dylan released a hit album entitled The Time’s They are a Changin,9a message that rings true to this day. Here are four unique opinions from a Web site owner, a fan and two musicians, on what the future of the music industry will bring.

“I think what will happen is major labels will become more and more like publishers. They will have a catalogue they have the rights to, but they’re going to be putting out a lot less new music. I don’t think that business will work for them. Their whole structure is manufacturing hits, but it’s expensive. It’s a business model based on the old rules of broadcast, short repeating hits. The Internet is completely eviscerating the broadcast model.” Tim Westergren, founder of Pandora

“The record industry is dead. Radiohead’s release of In Rainbows was one of the final nails in the coffin. Sales have been in decline for years, and with the rise of Internet downloads, most people don’t feel the need to go out and buy albums, and most bands are going to start to realize that being with a label reduces an insane percentage of their profits. CD buying will become a hobby, just as record buying is now. I’d rather listen to Radiohead than actually get head.” Ryan Hutchins, creator of the Facebook group

“I think [the industry] will adapt, in the end it’ll have to. The fans who go see live shows are the ones in control. It’s a cool place to be, at the end of the day, people want to see live music, so that’s what we’re concentrating on. I think there will be a new way to consume music. Whether ipods get smaller and smaller… who knows what will happen.” Todd Stoops, lead singer and keyboardist, RAQ

“It takes more work to be in an indie band, but major record labels will become obsolete. I really believe that. Now independent music is accessable, people will find out about you. As an indie band, we have three or four different Web sites which all reach different audiences. It’s more work but the return is worth it.” John Beninghof, guitarist and vocalist, Old Silver Band

It is hard to say exactly what the future will hold, as it is still being written. It is being written in blogs, on Myspace and Facebook walls, on band Web sites and in online radio airwaves. As Stoops acknowledged, “who knows what will happen,” but one thing is for sure. The Internet is forever changing the way the music industry operates, and major labels have two options to choose from. They can either adapt to the unwritten future and its online medium and make history, or stick to their old formula and become history.

Written by Jon Stewart with Brittany Hutton & Ryan Lowell