THIS YEAR'S MODELS

The traditional label model took a beating this week in the United Kingdom, with three of Britain's most established bands announcing digital-only, no-label releases.

Together, Radiohead, Oasis and the Charlatans have accounted for U.K. and U.S. album sales of more than 33 million copies, according to the Official U.K. Charts Co. (OCC) and Nielsen SoundScan.

Radiohead's announcement that its much-anticipated new album, "In Rainbows," would be initially released Oct. 10 as a download from radiohead.com—with consumers able to name their own price—caused an instant frenzy among fans (see story, below).

But, coupled with the news that Oasis' new single, "Lord Don't Slow Me Down," would be a self-released, digital-only track, and that the Charlatans will give away their as-yet-untitled 10th album as a free download via modern rock radio network Xfm's Web site, industry execs were left contemplating the potential meltdown of their existing business model.

"This signals another nail in the coffin of the traditional music business," digital music expert/author Gerd Leonhard says. "Managers will take their acts directly to market, and they will do it in a way that will cut out middlemen that don't provide significant values."

But brick-and-mortar retailers remain philosophical about Radiohead cutting them out of the sales picture—at least until 2008, when a traditional CD release is planned. "If they come out with the CD, Newbury Comics will carry it," says Brighton, Mass.-based Mike Dreese, CEO of the 27-unit specialist chain. "I am not resentful for artists taking things under their own control."

U.K. market-leading retailer HMV will be selling the album when it is eventually made available, says its head of music Rudy Osorio. "The only frustration is that it gives a misleading signal to the media that this is the end of the music industry as we know it, which is patently not the case."

One precedent for consumers choosing their own price point is Canadian singer/songwriter Jane Siberry, now recording under the name Issa. Siberry suggests 99 cents per track, but according to statistics published on her Web site sheeba.ca, fans actually pay an average $1.18, with 14% opting to pay more than the suggested rate.

"In Rainbows" will not appear on The Billboard 200, although it will be eligible for the Top Digital Albums and Top Comprehensive Albums charts if the site reports its data to Nielsen SoundScan.

OCC chart director Omar Maskatiya explains that the album is not eligible to chart in the United Kingdom, as "Radiohead's store is not part of our reporting panel." To qualify, an album must also have a published net dealer price of at least £3.75 ($7.66).

No one in the Oasis camp would comment on the band's plans after this single, although Billboard understands the group is in negotiations with several majors and is ultimately likely to return to the label system.

But Charlatans frontman Tim Burgess says there's no turning back for his band. "A major label is not for us now," he says. The band hasn't received a fee from Xfm, he adds, but he estimates other income will increase as a result of the exposure. "Giving it away was us accepting the inevitable—people don't buy CDs anymore," he says. "Why let a record company get in the way of people getting the music?" ••••

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