For over fifty years, record companies had a complete monopoly over the music that was recorded, played and sold throughout the world. In recent years, pretty much anyone with a computer has had the ability to produce, promote and distribute their own music. This situation has divided the world into two distinct camps: Those aligned with the record companies, with a desire to protect their existing investments and markets, and a new and emerging community who view music as a free commodity to be created, remixed and shared without payment.

In the 21st century, it seems to me that neither of these extremes are ideal. Certainly, musicians deserve to be paid for their efforts and their creative talents. However, the huge economies of scale provided by the Internet means that the prices charged by record companies are no longer reasonable. Most of the $30 that we pay for a CD goes on the costs of producing the physical CD, distribution, promotion and record company profits. Very little goes to the artist. Even the successful online stores, such as iTunes, have a pricing structure that is only slightly cheaper than CD prices, so as not to cannibalize record companies’ existing revenues. 

On the other hand, stealing music (whether from a shop or via peer-to-peer downloads) is illegal and just plain wrong. Teachers have a role to play in teaching students about the ethical dimensions of their online behaviour.

Slowly, a third way seems to be emerging.  British band Radiohead is embarking on a social experiment that is forcing consumers to confront the moral choices associated with online music. Rather than paying the record company (overpriced) or the free version (illegal), Radiohead is telling its fans to decide for themselves what they think that their new album, In Rainbows, is worth. Fans can even pay nothing if they choose to.

While this model is not going to be practical for many artists (Radiohead is one of the few bands with a large fan base that are not contracted to a major record label), it will provide a fascinating insight into what consumers really believe music is worth.  Millions of people are currently stealing music --- If Radiohead can convince these people to pay something, even a few dollars, for their music, they will make an absolute fortune. When this happens, lets hope that the record companies wake up and realise that their fifty-year old business model needs to change. 

(Picture of Radiohead is in the public domain, sourced from http://en.wikipedia.org/wiki/Image:Thomed.jpg