Radiohead had a contract with EMI/Capitol that expired in 2003 with the release of Hail to the Thief. Their new album, In Rainbows, which is shortly to be released is being released by Radiohead. That's not the interesting part. The interesting part is Radiohead are selling the album for how much (or little) you want to pay for it. The minimum is 45p to cover the credit card handling fee. This is really quite an interesting development. Admittedly, Radiohead are an established band who've made their money, but it really does suggest its about the music and not about the money, which is very impressive. Emerging bands may struggle not to sign with a record company, but its a intriguing step forward. It could seriously threaten record companies. The more interesting thing; whilst obviously alot of people will treat it as free music, alot of fans and people will do the decent thing and pay a fair amount for it. Given that record deals can land bands with relatively small percentages (<20%), even with the likely lower per unit income, Radiohead may well actually make more than they would with a record deal. More interestingly, this affects goodwill; people are more likely to buy other Radiohead albums (treating this sort of as a try before you buy). Likewise with merchandise, and concert sales.

Radiohead will also be selling a 'Special Edition' if you will in the UK for £40, consisting of In Rainbows on CD, along with a bonus CD with pictures etc, and Vinyls. Personally, I'll be buying it online. And I'll be paying a fair price. Smooth move Radiohead.