• Reuters, Monday, October 8, 2007 11:30 AM

The release of the album "In Rainbows" by British rock band Radiohead is being closely watched this week by the music industry for several reasons: for one thing, the band is one of the most highly acclaimed rock groups by critics worldwide. For another, the band decided to allow fans to pay whatever they want to download the new album, which is sure to make recording industry executives sit up and take notice.

Aside from the novel "donation" approach, one unique aspect of the "In Rainbows" release is that it comes just 10 days after the band completed recording and mixing. As Ted Cohen of music consulting firm TAG Strategic says: "This has been a long-brewing issue with artists. In a digital world where you can create something relatively quickly and get it out there immediately, why wait? Is there any overwhelming need to sit on something for three or four months?"

Typically, Radiohead would sign with a major label, send it the album, and then wait several months for the label to build marketing buzz and organize a tour. This is the first time the British group is releasing an album without label support, something analysts say it can get away with because of its huge, loyal following.

If big names follow Radiohead's lead, it could be to the detriment of the music industry, other analysts say. New acts need label support to build their name, and the labels need revenue from big names to help support the search for new talent.

Read the whole story at Reuters »