Billboard.biz is reporting this afternoon that the new album by English rock band Radiohead, In Rainbows, will see a physical release sometime in the new year by a major record label. This follows the band's announcement this morning that fans could pre-order a download version for immediate release in only ten days. In addition, there is a twist for the record industry: fans can name their own price for the album. The pre-order also offers a special edition physical copy available for £40 ($82), and it includes a copy of the digital version.

I'm a fan of Radiohead and although I hate the price of the pre-order physical release, I do like this tactic because it places control of the album directly in the hands of the band, but also with fans and listeners. I continually refer to the record industry and retailers as nothing more than middlemen, and this marketing plan leaves those entities out completely. That includes Apple Inc. (NASDAQ: AAPL)'s iTunes Store and Amazon.com, Inc. (NASDAQ: AMZN)'s new MP3 store.

Music industry insiders are saying that it could revolutionize the way consumers think about music, but more importantly how much they think music is worth. With the high prices in the music industry, Radiohead are certainly putting themselves on the line. They do have a nice track record of hit albums (front man Thom Yorke's solo album debuted at #2 last year, and their last album peaked at #3 in the Billboard 200) and a devoted fan base, so any real worries should be assessed to the status of the record industry. The real question will turn into one that evaluates how much is the music industry worth when the artists are willing to go directly to the listeners.