Devoted to Managers and those that seek to improve their management skills

I like the decision by Radiohead to take charge of their own destiny.

In 2005, the popular band left its old label EMI, and haven't signed up with anybody. They've decided to try to market their new album In Rainbows themselves instead of finding a new label, as lead guitarest Jonny Greenwood announced on their site saying, "Hello, everyone. Well, the new album is finished, and it's coming out in 10 days." It caught everyone by surprise.

Some think this is a risk, but with the state of the music industry, I'm not sure the risk isn't staying with the model of the industry.

The industry continues on while not doing much to adapt or change their model. Sure they're doing the Apple iTunes (AAPL) thing, among other download sites, but they continue to drop in sales in spite of that.

With that being the reality, it makes sense for a band like Radiohead to try some different things. The music industry will never go back to the revenue generated in the days before the internet provided downloaded music and ease of access.

So if they signed up with another label, all they'd do is the usual promotions that haven't done anything to drive sales for a number of years.

Their strategy is to offer a downloadable 10-track album where fans can pay whatever they want for it. From there they will then offer a Discbox, with a physical vinyl record and CD. It will include eight more songs, along with additional photos, artwork and lyrics, presented in a hardback book and slipcase.

The special edition will sell for about $80, depending on what the currency rates are at the time. It'll be available on or around December 3.

What do they have to lose? Absolutely nothing. The band is popular enough so if the initiative doesn't work they could always simply sign up with another label. 

From a management perspective this is a good move. They're taking some risk, but at the same time trying an experiment that has a great chance at success.

It looks like they realize they can't count on the record labels to help them more than they can help themselves. Rather than wait around for an industry that has no idea what to do next, they're going ahead with something that can unlock the door to new fans, while at the same time offering a way to monetize in a greater way, and where the band gets control of all the revenue.

We can't always wait around for someone else to lead the way, that's what's important about what Radiohead is doing. The music industry is in turmoil, and the traditional labels can't or won't change to reflect that reality. Radiohead isn't waiting around to become a victim of those with no idea how to go forward. So they're going forward themselves. That good business leadership.