
Yesterday I was asked if the Radiohead experiment of releasing exclusively online and allowing fans to name their own price for their latest CD would threaten online music stores like iTunes and Rhapsody. My answer: Nope. This is more a threat to the major record labels and big-box retailers than the online music stores. This developing trend of artists like Madonna, Trent Reznor and Radiohead either going off-label or releasing digitally may actually be good for online music stores because as independent content owners, artists can negotiate distribution deals directly, rather than relying on their respective labels to do it for them and at a price. I expect artists to align with online music services rather than compete with them.
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