Today marks the debut of Radiohead's latest album, "In Rainbows," but you won't find it in record stores or on iTunes. Without the help of a major music label, the band is promoting and releasing the album over the Web, DRM-free—and for whatever price that fans are willing to pay.

Other groups are taking notice. Trent Reznor of Nine Inch Nails announced on Monday that he's ditching his label, Universal Music, and many suspect that NiN will follow the lead of Radiohead (whose contract with EMI expired in 2003) and self-distribute its next album over the Net. Meanwhille, Crave reports that two other notable (and unsigned) bands—Oasis and Jamiroquai—might give away their music on the Web, and Techdirt adds solo artist Will.i.am (of The Black Eyed Peas) to the list.

So, what's going on here? How can musicians survive by giving their tunes away for free? One word: merchandise. Radiohead is essentially using the Web to turn the traditional music business model on its head—the music will (theoretically, at least) drive the sales of merchandise (such as T-shirts, posters, and boxed sets, such as the $80 LP and CD "discboxes" for sale on Radiohead's Web site) and concert tickets, rather than the other way around. File sharing is encouraged (so bye-bye, DRM), while the big music labels are left out in the cold. As Will.a.am of The Black Eyed Peas said (as quoted by Techdirt), "the new distributor is your niece."

Sounds like a makings of a revolution, although the actual mechanics are a little shaky. Radiohead's Web site is slow as molasses today, and Listening Post's Eliot Van Buskirk isn't so sure that Radiohead's hosting company will be able to handle all the downloads. I'm going to try the site again a little later and see if things have improved. Still, I have a feeling that the music labels are feeling a little queasy today (or at least, they should be).

Related:
Bands Rushing To Ditch Labels And Embrace Free; Are The Floodgates Opening? [Techdirt]