That would be like a sucessful internet company starting its own telegraph line. The point of this deal is that the labels are no longer relevant. For decades, they screwed musicians, screwed fans, and peddled the worst of American music -- there really is good stuff out there -- by aiming for the lowest common denominator.
Public Enemy put its album out online. Radiohead followed suit and made its album available for whatever downloaders wanted to pay. Now the Eagles have done an end-run around the labels and gone straight to the fans. The album is selling. It's working. It's a precedent.
The record labels could have done many things to adapt to the new distribution model, but they chose the worst one possible -- they dragged college students into court and brought their legal sledgehammer to bear. I don't have any market research at hand, but I'd bet that college-age folks are the age cohort that buys the most music. Alienating your core audience is not good business.
The record labels will remain relevant for one reason and one reaon only -- they still own the back catalog. New music, not so much. PE, Radiohead, and now the Eagles have thrown down the gauntlet. Others will follow. A record label will give you a gold record, a nicely-framed little trophy to remind you how much money you made for them while you took home 1%, minus tour expenses and promotional costs. If you can make your own album, sell a tenth as many copies and keep a third of the money, you're way ahead.
The funny thing is that this is another rift in the left -- Don Henley is an environmentalist, and has made Walden Pond his personal cause. So the question, for liberals, is: Do you love Don Henley more than you hate Wallyworld?
I don’t know what to think about the Eagles. Personally, I like Wal Mart more than I like the Eagles, but I am curious about their new CD. I might take a chance if the price is right or I’m in the mood.
I know record labels have been slagged by artists — and if you ever have a chance read Steve Lillywhite's take on them — but I’ve also read some convincing arguments from the other side, especially from a mystery music producer who makes a good case why record contracts and labels are the way they are. If you want to read either the producer or Lillywhite's take let me know.