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Critically acclaimed British rock band Radiohead has just announced the release of their seventh album, In Rainbows. I am a huge Radiohead fan but what I really wanna talk about is the remarkable way they are launching their new record.
Radiohead is offering the entire album in through their website and fans can pay whatever amount they want to digitally download it.
This donation-style system is significant because of Radiohead’s reputation and the size of their fanbase, which easily reaches into the millions globally.
The band is able to do offer their songs in a DRM-free mp3 format because they don’t have a record label and hence own complete distribution rights over their music. This essentially bucks the industry trend of reliance on record companies and marketing teams to produce, commercialize and promote music records.
Time Magazine has a brief quote from Radiohead on their independent status:
Radiohead’s contract with EMI/Capitol expired after its last record, Hail to the Thief, was released in 2003; shortly before the band started writing new songs, singer Thom Yorke told TIME, “I like the people at our record company, but the time is at hand when you have to ask why anyone needs one. And, yes, it probably would give us some perverse pleasure to say ‘F___ you’ to this decaying business model.”
Fascinating. I was quite intrigued when I first read about Radiohead’s latest album at Boing Boing and I definitely think Radiohead has initiated something that may have some considerable repercussions for other musicians and record labels.
I also thought it was a great marketing strategy (intentional or not) and I thought I’ll just go into detail on why I think this is brilliant venture for both fans and the band.
It’s Not All About Money: Reaching Out to a Loyal Audience
Listening to your fans is one of the greatest ways to show that you appreciate their support. From the simple act of taking a song request on stage to lowering ticket prices for your audience across the board, there are many ways to reach out to fans and show them you care.
Cutting out the middlemen and selling directly to a target audience is something that rock bands have been doing for a long time. Many of you might have been to local indie rock shows and visited the merchandise table where you can often purchase the band’s self-produced CD albums and even a T-shirt or zine.
Radiohead revisits this familiar business model and throws it up online, simultaneously connecting with millions of fans. The simple act of letting their audience decide the value of a product (by determining the price) is a mighty way to show their generosity and commitment to art instead of just business.
Bob Lefsetz, an American music industry critic and consultant to major record labels talks about the importance of Radiohead’s actions:
It’s not like Radiohead’s living in a different world. But they’re playing by a different rule book. One that says the money flows from the music, that people have to believe in you, that you’ve got to treat them right.
This is big news. This says the major labels are fucked. Untrustworthy with a worthless business model. Radiohead doesn’t seem to care if the music is free. Not that they believe it will be. Because believers will give you ALL THEIR MONEY!
This is the industry’s worst nightmare. Superstar band, THE superstar band, forging ahead by its own wits. Proving that others can too. And they will.
Anti-Marketing Buzz: Radiohead and the Free Model
New album releases from major label bands or artists are often surrounded by a huge company orchestrated marketing campaign; Talk show performances, media interviews, new touring schedules, store autograph sessions and ad spreads in relevant traditional and online publications.
Why not just let your fans do all the talking? Distributing a much anticipated music album online and not setting a fixed price (“Its up to you”) is a gesture that generates buzz. It’s flippant. It’s casual. It’s a me-and-you relationship.
Take a look.
I’ve mentioned before that giving something away for free is a business model that never fails to work. Radiohead might not earn as much money for In Rainbows as their earlier albums but they do gain many other benefits like credibility, which are difficult to replicate through overt commercial marketing.
Alongside the digital download of their album, Radiohead is also selling a £40 box-set which consists of the CD album, vinyl records, additional songs as well as artwork and lyrics. Some of the hardcore fans will inevitably purchase the box-set, which will ship a month after the album is available for download.
The Telegraph suggests that Radiohead stands to gain a lot from this strategy:
Radiohead could even benefit from those who ignore the box set and choose to pay nothing to download the album from Radiohead’s online shop, where they will be required to register their details and therefore become targets for future marketing campaigns.
Free albums also drive demand for live tours, which translate to pound signs for the artists behind them.
A great example of this is Prince, who in July gave away his album 3121 for free in the UK through the Daily Mail. He subsequently announced 21 tour dates in London, all of which sold out.
In a world where marketers want you to pay top dollar to demonstrate your loyalty to an artist you favor, Radiohead is making a refreshing statement. They are going down a different path. Showing us it isn’t all about money.
Anti-Marketing Bypasses Obstacles to Massive Popularity
Music piracy and file sharing have been a cause of concern for the music industry since the advent of Napster, a popular file-sharing network in late 90s. Artists and musicians have dealt with this problem differently. Rock band Metallica sued Napster in 2000, which distanced them from fans and led to a major PR disaster for the band.
Image Credit: Interscope
Nine Inch Nails (pictured above) took a drastically different route. They streamed an entire album (Year Zero) for free on their website, willingly uploaded torrents of their new music, called their record company ‘thieves’ and publicly asked their concert audience to download their music for free instead of buying it from pirates.
Giving away something for free and interacting with the web-savvy fan community will help to sidestep piracy and file sharing issues. Why download a torrent when you can easily get it from the source? Why not support someone who understands your desire to share music?
Radiohead’s strategy of offering the album for next to nothing also deals the problem that comes with the leaking of major records online before they are released.
Matthew Solarski of Pitch Fork Media explains:
What Radiohead’s doing here is actually pretty cool. Rather than preface their new album’s release with the usual three months of press ballyhoo, only to have it leak at some random time before it comes out, they’ve kept it completely under wraps, then essentially gone and leaked it themselves.
What’s more, they’ve turned this into a moral question of sorts, by giving us the freedom to pay actual money for what amounts to an album leak. Only a band in Radiohead’s position could pull a trick like this. Well played, gentlemen.
Radiohead’s publicist has confirmed that a physical CD album will be probably released in January 2008, three months after the online launch of In Rainbows.
The physical quantity needed would be minimal, given that most fans would have purchased either the box set or entire album online. This low level of future demand makes it easy for Radiohead to manage distribution; they could possibly sign a short term distro-only deal with a smaller label or even sell through their own website.
Traditional Profit-Driven Marketing is a Dead End
The RIAA sees file sharing as mere copyright infringement but pundits fail to understand that file-sharers are music fans, first and foremost. Some of them are far more willing to support independent ventures if you understand or reach out to their community.
Unfortunately, bureaucratic major labels are profit driven. Like any other business, it focuses on making the biggest amount of net revenue and measures costs against potential profit. Don’t expect funding if you don’t have a track record of success. It’s not going to happen.
Street teams have long existed before it was co-opted by professional companies interested in the almighty dollar. Before it became a marketing theory to be applied on clients needing exposure. But it was always just a two-way relationship between two parties, the fans and the musician.
Marketing on the grassroots level is achievable by anyone without support from profit-driven record companies. How? By consulting and recruiting active fans in online communities. By building long term relationships at the expense of initial profits. There are other ways to generate income, apart from the sale of records.
The brand is always most important. American model and singer, Tila Tequila is a good example of someone who understands this perfectly. Tila became popular in the U.S. and eventually landed a record deal through active interaction on MySpace, the popular social networking website.
She gradually accumulated 2 million friends on MySpace and build a loyal following of supporters. Her profile has been viewed 73 million times, possibly making her the most visible and befriended person in the entire network.
It doesn’t hurt that the Myspace is the exact demographic she needs to support her musical or modeling ventures.
Image Credit: NGottwald
Rock band The Smashing Pumpkins released their Machina II album for free on the Internet by sending 25 physical copies of it to fans active in the online music community, with explicit instructions for re-distribution. It was then uploaded to the internet (download it here) and shared with other Pumpkin fans.
While the Pumpkins only did this because Virgin refused to release the album (due to poor sales figures for their previous album), this demonstrates that viable alternatives can and will work when you want to reach out and share your work.
Look beyond commercial side of all ventures and embrace your audience before everything else. Especially if you are someone who believes in the value of what you are offering to the entire world.
The Internet as Midas: Sharing Brings You Fame and Money
The growth of accelerated and shared communication channels are catalysts for globalization. Youtube has the ability to turn average folks into online celebrities, to be watched, followed and obsessed by tens of thousands across the globe. All you need is a webcam, an internet connection and a willingness to share.
Blogs and personal websites are similar. A simple blog post can disseminate an opinion that reaches millions over time, especially when others pick up and share it through links, recommendations and citations.
A singular opinion piece can spread throughout a lateral hierarchy of channels: Thousands of blogs, each reaching other bloggers and their own circle of readers. Never underestimate your own ability to share what you deem important.
What Radiohead has done isn’t completely original. Other bands and artists have offered their material for free through the web. The question is, can smaller and unknown bands or musicians do the same and achieve success?
Definitely. The strong file sharing community is itself an indication of the demand for free or donation-funded creativity. Social networks and citizen media abound; both can be easily leveraged for attention.
It’s so much easier when you are trying to share instead of sell.
Radiohead is a band that is very much respected and loved, so what they have done may send some real ripples throughout the recording industry. Will it change the way artists or marketers produce, promote and think about music?
I would really like to think so.
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