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But Wait. Is Thom Yorke Totally Full of It?

Thursday, June 10, 2010
by  presnikoff

Thom Yorke recently warned newer talent to avoid the music industry establishment, a "sinking ship" primed to collapse in a matter of months.  But is that statement passing the sniff test?

Not quite. Already, the Yorke arguments are springing a few leaks.  Radiohead jumped ship on the troubled EMI, though one Digital Music News reader pointed to a subsequent distribution partnership with RED, owned by Sony Music Entertainment, for In Rainbows.  That deal happened through ATO Records Group, part of a post name-your-price release strategy.

In fairness, this is hardly a conventional major label deal - far from it.  "They don't have a traditional major label relationship at all, they are just renting a distribution network," one executive close to the relationship relayed, on condition of anonymity.  "There's no risk capital on the label part whatsoever, and [Radiohead] could easily replace this disitributor with another."

Valid counterargument, but what about publishing?  Here, Radiohead also has a partnership with Warner/Chappell Music, a unit of Warner Music Group.  Perhaps missing from the torrent of In Rainbows coverage, Chappell was a heavily-involved partner in the project, helping to consolidate recording and publishing rights ahead of the name-your-price launch.  

That was the focus of a presentation issued in late 2008 by Jane Dyball, Warner/Chappell Music senior vice president of International Legal Business Affairs, during the You Are In Control symposium in Reykjavik. The event was covered by Digital Music News, and also extensively by Music Ally. "We took the opportunity to ask the question, 'will people pay for something if they can get it for free?'," Dyball explained. "I found it incredibly reassuring, because I had doubts there was money to be made online."

 



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