Radiohead has an innovative new approach to music distribution that the band is employing for its new album, In Rainbows. The album is initially only available on the band’s website in two forms, digital download or discbox set (which consists of the album on CD and 2 x 12 inch heavyweight vinyl records; a second enhanced CD that contains more new songs and digital photographs and artwork; lyrics booklets; hardback book and slipcase). When you purchase the discbox set, it includes a digital download of the album as well. The discbox set sells for about $80, but the kicker is that when you buy just the digital download, the price is left up to the consumer.
By limiting the sources of distribution and putting the moral decision of paying for music squarely in the consumers hands, Radiohead may have found a creative way to hedge against illegal downloading by making it irrelevant. The idea is that the true fans will pay for music that they are emotionally invested in and/or have respect for. By keeping the fans best interest in mind, Radiohead has given consumers a reason to respect them, even if they are not die hard fans.
If this new distribution model is successful we may see variations of it developing throughout the music industry.
by Alex
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Apparently, the album will also eventually be available at the store in tradition CD form. Pitchfork did a good job of summing up all the methods of distribution:
http://www.pitchforkmedia.com/page/news/46028-radiohead-album-coming-out-as-regular-cd-too