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Nine Inch Nails Help Seal Record Industry’s Coffin
by Duncan Riley on October 8, 2007

Highly popular Industrial Rock Band Nine Inch Nails have announced that as of today they are free agents, and will not be using the services of a record company in the future.

Nine Inch Nail’s Trent Reznor wrote on the NIN site that the writing is on the wall for the traditional music distribution model, saying that the music business has radically mutated from one thing to something inherently very different today and that “it gives me great pleasure to be able to finally have a direct relationship with the audience as i see fit and appropriate.”

It’s expected that Nine Inch Nails next album will follow on from Radiohead’s Rainbows and be released directly to the public.

I think Gizmodo hits it right on the head when they write:

If two of the biggest acts in the industry can see the digital writing on the wall and totally embrace it—that the old way of doing business is broken—why can’t the labels? What Radiohead and NIN are showing is that the business model “of the future” feared by entrenched interests isn’t arriving some time in the horizon. It’s touching down now.

See also Michael’s take on the music industry here.

Responses

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  • And we will continue to see music leveraged as a promotional tool to sell, concert tickets, merchandise etc. Artists (bands) will look for channels that can provide access to new prospective audiences. File sharing will provide that channel, and scalable companies that can access those channels will prevail.

  • This idea, to a point, really only impacts already established acts. Sure some indie acts might feel the freedom from labels liberating, but there other bands who need the label system to get noticed. It could go either way. It’s funny how the first two acts of this are rock groups. Groups from a genre pretty much on the decline, probably hit more so from piracy than any other. Moby called it the “Pearl Jam effect.” Have fans who are more likely to download like young males and your sales will suffer. Hence, rock’s decline. Although that’s being too easy…

  • GOOD! I’m not a NIN fan, but I’m happy to see them and Radiohead step up (and out) and away from “the industry”.

    This, I agree, will is the beginning of something greater for the end-user (us) … and it’s about time!

  • @TanTheMan - “a genre pretty much on the decline” - Care to site a source on that?

  • Wow, this is great news. I’m fascinated to see what response this causes.

  • It’s easy for established bands to get all anti-corporate after they’ve made significant income from the industry. However, without an industry to nurture and promote new acts (which was the case with NiN and Radiohead), art will suffer. It’s simple - people need to buy the music they listen to.

  • “It’s funny how the first two acts of this are rock groups.”

    Just to set the record straight Prince did this “first” over a decade ago and has been releasing albums on his own terms for just as long. Sure he releases albums using major label distribution deals, but he retains the rights to the songs and albums. And I’m sure someone did it before him.

    However that being said. I am neither a Radiohead or NIN fan but I like the fact that these guys are looking at the possibilities outside the major label system. I think if more established artists started looking at this more seriously, the record companies would realize more quickly how far they have fallen.

  • MR Reznor (ha!) has been against recording industries for a long time. I think it was accentuated earlier this year when they came to Australia and saw that their album was being sold for a ridiculous high price so their label could make more money because their music was not as popular as “artists” like Avril or Christina. It’s about time, I hope other bands follow suit. Maybe better music can reach the people because of this, as there will be more freedom of choice.

  • It’s a slippery slope my friend!
    TC serving REAL slow now days and on to something about nothing (What Up?)

  • Jean-Michel Decombe - October 8th, 2007 at 9:11 pm PDT

    I completely disagree with the premise that it’s only good for established bands. A lot of the music that I have been happily discovering in the past few years has been made by small bands with no label support, just a web page and ingenuity. Some have grown to produce CDs and concerts. I have bought the former and attended the latter. And publishers are not all bad. There are great smaller publishers out there, like Nonesuch Records.

  • Jeeeez… how could you miss such an obvious, brilliant, headline?!

    “Nine Inch Nails Help NAIL Record Industry’s Coffin”

  • Stephen
    the two nails didn’t work for me, but the imagery of sealing a coffin with nails was in my mind with the headline :-)

  • These bands aren’t the only ones doing it. A lesser-known british band (but still pretty big over there) called The Charlatans are making their next album available for free.

    http://www.xfm.co.uk/Article.asp?id=485685

    -Jamie

  • Hanson did this too a couple of years ago. Interesting times indeed.

  • Radiohead doesn’t deserve any congratulations what with its refusal to sell anything but bundles of songs (formerly known as albums). As for non-established bands going this route, the music business is no different than any other. They will need startup capital and a marketing plan.

  • Now who’s gonna pay for all those expensive music videos? Ummm… bands doing their own UGC style music videos? I don’t noooo… then again there are plenty of indie geek-groupies who can do killer edits, sets etc.. I hope this becomes a mega-trend. If I were in a band and the label was sueing my fans for loving my music ‘too much’ … I’d say screw the label and make a direct connect with the fan/s. “We can work it out, we can work it out….”

  • jessica anne smith - October 8th, 2007 at 10:47 pm PDT

    the fine line separating genius - Trent, and insanity - the bloated, parasitic recording companies, has been invoked. Perhaps they wanted to control a tinsy part of the hand that fed them (feeds you). Will they retaliate or will they (you) stay down on their (your) knees.” Since the PRETTY HATE MACHINE days, I’ve been listening, learning and rocking-out. YOU MUST DO WHAT YOU FEEL IS RIGHT…

  • How is this any different than Pearl Jam (who frankly is a much larger act) - this isn’t game-ending although I wish it was…

  • Finally the big bands and established musicians are waking up and realizing that music labels are all about making money and not good music. Music is about the artist and fans, not the distributor.

    The recent court verdict leaving a $222000 penalty for a lady sharing music on Kazaa would make every artist sick and disgusted of working with music labels. Is this the price of trying to enjoy music?

    Of course there are the critics who will say: the artists are being ripped off and their profits of record sales are lost, but this can all be compensated by live concerts, merchandising and the future trend of direct digital distribution from artist to listener.

    Salute to the brave revolutionists.

  • Ridiculous retail prices planted the first nail in the record industry’s coffin! I live in Paris, and many of the CDs I’d like to buy (but don’t) cost 20€, that’s $28 for something that costs $1 to produce with an average of (only) around $1 going to the artist. Is it any wonder that people like me only buy half a dozen albums a year (either used CDs or on sale at reasonable prices)?

  • I’m concerned that NiN are not that switched on to marketing. If they were there’d be something other than a 404 at nin.com/poop.
    A golden opportunity squandered.

  • HELL YES!!! HOLY CRAP HELL YES!!!!
    OMG
    Does this mean I can use your music on my podcast?
    OMG

    I am so happy to hear this!
    You KICK ASS!

  • “Now who’s gonna pay for all those expensive music videos?”

    What’s the point of making a music video anymore? I haven’t seen a music video on MTV or MTV2 in years or even decades.

  • I like the fact that this is a big kick on the record industry’s rear! :)

  • I think you have to look at this as the return to capitalism from a monopoly. Soon maybe music will sell based on talent and we don’t need to worry about those that can’t survive in the new realm without the label. I mean seriously, look at all of the terrible music on the radio right now and tell me that with out the industry propping it up, people would have ever wanted to listen to it.

  • This is market correction. People steal media over P2P because the markup is absurd. Moves like this will become more and more prevalent and people will decide how much to pay for records, based on the artist’s reputation for quality work. And what else: we will pay more than people might think.

    Our kids will be studying records labels in history class.

  • To say that Radiohead is rock is incorrect. Radiohead is its own genre. They certainly have done rock and rock-like things, however they are truly outside of normal genre. NIN is very different. They are trying new things. I doubt that it has anything to do with what some people think it does. Sometimes, really intelligent people are above material things (i.e. Trent and Thom), and it is the pursuit of art that motivates them. Let us all have a moment of silence now….

  • Hopefully more and more acts will try new approaches to their music distribution and this will lead to new methodology for the “labels”. And with Urge, iTunes, Rhapsody and the like, there is the distribution if one wants.. Bloggers review and recommend. They can make their music available to Last.FM or Pandora for further discovery.. Let the people truly decide who is the next big thing instead of the industry and the media “hype” machine.

  • this is indeed great. And as for those that say it’s easier for a well established band to go this route you’re completely WRONG.
    It’s actually a lot easier for unknown bands to do this. They got nothing to loose.

    Well established bands on the other hands take a huge risk by going without a label.
    Staying with a label would be the safest move for any semi-famous band because once a label knows they can make some money off of you, they’ll do anything to help/promote/protect their investment.

    I think this is a great move and i’ll buy both the next Radiohead and NiN albums, just to support this trend (even though i’m not a huge fan of either band.)

  • I think we may have nearly reached a tipping point in the battle between artists and labels. It’s been brewing now for almost ten years. Rather than embrace technology with forward thinking strategies, the labels been trying to force outdated business models onto the Internet, with tragic results. I can think of no other industry who who treats both the creators of the product they sell, and their consumers with such blatant disrespect and active hostility. Any attempt to educate the major labels has been routinely ignored. All the major and minor labels were presented with a variety of solutions long before Shawn Fanning let the genie out of the bottle. Now they want us to pay for their ignorance, arrogance, and Luddite approach to a rapidly changing market landscape. I would not at all be surprised if at some point the RIAA proposes a Uniform Music Tax to Congress… I mean come on, using their logic anyone who listens to music on the radio is stealing! In the 1930’s, radio stations successfully boycotted the major labels of the day to protest paying for the privilege of promoting their artists. With the advent of sites such as garageband.com, CDBaby and iTunes coupled with inexpensive webcasting, who needs the majors? I can sell fewer albums, promote my band in the ways I see fit, reach a global audience and still make more money. So congrats Trent, you are at the forefront of a true revolution that is a long time coming.

  • New bands jump on anything just because its a dream to get there. other than that its all myspace to get the name out there. they need a social network simular to myspace for only new bands and a way to buy and distribute there music on the net so that fans can rate them and comment them and try them out before they purchase. this online community will likly have someone like trent reznor (not him directly but someone with his feelings about corpoate theory (greed) in charge so that the compainy doesnt get greedy.

    this website/social site will likly get so large people will be looking to buy it and others will copy it and try and make a killing off of these bands just like the riaa.

    i would suggest licensing the music under some sort of GPL license for music. i dunno.

    anyways all bands have the resources to make a website and sell music and do live shows. when they get popular and get cash they play bigger venues with more people (right now most artists with a lable get 40k a year).

    the problem is small bands sometimes suck and they will always die regardless! when a lable introduces the song to raidio its either hit or miss if its a miss that lable wont give it anymore airplay (or the raidio compainy). im saying its an effort on everyones part to make sure music is open to everyone and that everyone is able to purchase music.

    getting rid of lables isnt going to make things easier or better for everyone, its not going to make it worse for everyone but the greed needs to be shot.

  • Alphaville did a try with this model with their Dreamscapes #9 album back in 2000 or so. I think it was too early and it didn’t work out, since it seems to me that their latest album was released on the old label model. They are from Atlanta Records, if my memory serves.

  • Of course, these are groups that are stinking rich, and no longer require the support and promotion that a record company says they provide. Now don’t get me wrong, the big music companies have done nothing for music availability, development or sales for many many years. They only sign up bands that “they” think might be saleable in the short future, not what you or I might like. However, if you’re a small band with loads of talent, how are you going to get noticed if everyone turns to the open market?

    Mmm! You mean we need a place where we can put our music? Oh, like P2P, to promote, and your own website to sell. Oh shucks, everything is going to be alright afterall. Nice!

  • All of the artists mentioned here (NIN, Radiohead, Prince) benefited greatly from the major label marketing machines which helped them build their brand. That’s why they can afford to do this.

    For the majority of Long Tail artists, there will be no means of making a living or even paying their bills from music. Touring? Forget that. Most indie bands don’t make enough to pay for gas.

    I’d be curious to see if any new indie band will ever rise to that status of the aforementioned acts with NO label support whatsoever. I seriously doubt it. I think that in the future, most musicians will be amateurs.

  • I agree with Peter. Social Media does have the capacity to reach thousands of eardrums and eyeballs- but making it rise above the din requires either incredible ingenuity (and serendiptiy) or investment. If anyone thinks that the OK Go video didn’t have the support of hundreds of paid e-teamers jacking up the views to where it became a genuine viral hit - you’re absolutely wrong. It’s all spoofed- or a novelty.

    Labels are no longer widget sellers, but talent incubators. They invest cash and resources in a band the same way a VC does a small company. They’re also in the information syndication business and as time moves on, more akin to Reuters and the AP than the current “widget seller” model.

  • Just one nitpick… It’s Radiohead’s ‘In Rainbows’. Not just ‘Rainbows’, as you have stated.

  • I agree 100%, the music industry as we know it now is in such big trouble. Artists have long had an antagonistic relationship with record labels and now they have the opportunity to have full independence AND make more money. Record labels are living in denial, they are desperate to stop the bleeding but they aren’t going to be able to esp when the artists defect themselves to a new direct-consumer model.

    This in contrast to movie/tv production. It still costs a lot more to produce a quality tv/movie, far more than an album. But the genie is out of the bottle and no one can stop file sharing. It is a golden opportunity for entertainment companies to invest and explore new ways to interact with consumers, not fight them. Wake up, entertainment industry or you will be doomed to go the way of the dinosaurs.

  • Industry needs industry to function. Radio stations make their money on ads placed by other industries. If you want your song to be played on the radio, then you will probably need industry. This marketing of music ‘art’ has completely destroyed the music that everyone use to love. Now we are left a broken Britney, rap that is crap, no hip hop, and rock bands that display evidence from the corporate mold which is majority played on the radio.

  • Nine inch nails, hmmmm, never heard of ‘em.

  • Being that the record labels have such a grip on the radio industry… will this mean we will no longer hear NIN on the radio?

    DJ’s Revolt…

  • to Neil J. Squillante:
    You think that “Radiohead doesn’t deserve any congratulations what with its refusal to sell anything but bundles of songs (formerly known as albums)”, but I believe EXACTLY the opposite. Radiohead makes ALBUMS, not singles, and therefore are right to sell their music the way they want it to be heard. If you don’t want to buy it because of that, then don’t. Or if you want to buy it but only listen to 2 songs, go ahead. But you’re not getting the whole picture that way, and what you’re missing is pretty damn good.

  • For those that say that only established bands can do this… May I propose that the established bands promote other bands via linking/social networking on their sites?

    I’d love to hear Trent point out what he’s been listening to, who’s opening for him, etc. I’d check that stuff out. Maybe the other band crosslinks again…

    I’d prefer (though I don’t know if it will happen) to see these “big bands” be the seeds for massive grassroots “get-out-the-music” efforts. Kind of like a torrent… They find a kick ass band, I grab and share, etc. This really *could* work… If it’s done right.

  • This is great news! This is the first of many steps needed to breakaway from the spoonfeeding overloards the music industry has evolved into. Instead of producers pushing poppy shite cakes we currently are exposed too (Britney et al), bands that have appeal musically will rise to the top…ROCK ON NIN!

  • No mention of Minor Threat, Fugazi or Dischord Records yet?

  • tan the man sounds like he/she is with a label .labels dont promote true talent anyways. they dictate the music enslaved bands produce, as example citizen cope.
    sales of albums are barely where enslaved bands make their money. enslaved bands make the mojority of their money , ie. concert ticket sales. merchandising etc , if the labels were not so overly greedy , im positive that, while file sharing would remain the same, album sales would increase , every one wants the original cd/ dvd, thats common knowledge.
    and as for rock dropping off , what planet are you from? rock is far from dead. it shows in their sales. r&b is the genre dropping off , 20 years of sampling others music can only be done so many times before it all sounds the same , as it is now. also you hear more rap/r&b sampling ROCK and we all know those rock bands are getting royalties from their music being sampled. is it due too the lack of artistic talent. im glad major groups such as nin and rh have kicked the “man” in the ass. it sad that this is what it is gonna take for the labels to stop the greed. but ROCK on trent . i may actually start to listen to nin due to this fact , whats that another consumer for nin. YAY!!
    tan man , if you want people to listen dont base things off personal opinion and pass it off as fact. i hope you dont give out alot of advice.

  • Thank you Trent. I’ve been a big fan of NIN for quite some time now. The recent RIAA case of $225068798465131635467 or however much the term “outrageous” describe in maximum these days, proved to me that music is not about music anymore. Music today is about companies owning bands and making large sums of money off of their talents. I am by no means an anti-capitalist, I love capitalism, “Wealth of Nations” all the way in my book, but to me music should be between the artist and the fans. Not the label telling the artist what the fans can and can’t have.

  • Well, Trent is known all over the world because… his record labels placed the NIN albums on the most visible places in tens of thousands of record stores. I wonder how he will be able to distribute the next NIN album physically. A lot of people still want to buy CDs. I am sure NIN can sell a lot of music digitally online, but I doubt that their popularity will grow. It will be interesting to see…

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