Radiohead's new business model:


Radiohead is offering downloads of their new album "In Rainbows" on their website. You name the price (including $0)
http://news.blogs.nytimes.com/2007/10/02/an-album-that-costs-what-you-want-it-to/
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It should work, particularly if they tie it in with a world tour. Big name artist like Radiohead, Rolling Stones, Prince, etc. can easily gross $100,000,000+. The album sales are just the teaser.

At a very different level in sales, although not artistry, I know that Jane Siberry has been doing the same for a few years. Touring and merchandising is where the money is for working artists.
NPR did a story on the band yesterday. Since most money goes to the record company, they will actually get to keep the product of their making. As '61 notes, most revenue comes from sources apart from record sales. Still, gotta hand it to them for bypassing the evil that is most record companies!
Interesting that it will be available on vinyl in a complete set with CD and download:

DISCBOX

Price is a bit steep at 40 Pounds...
What I found extremly interesting (and encouraging) was the number of bloggers on the NY Times page that noted the superior audio quality of vinyl, in their comments. Surely they can't all be audiophiles?
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It's brilliant, there are probably millions of guys like me who would never shell out full fare for a Radiohead album, but plenty willing to pay a buck or two for the download.