NIN and Radiohead have always been outspoken critics of the state of the recording industry, and so it is without suprise they are among the firsts to become independent of a label. Also, their influence as modern musical powerhouses will hopefully send a message to other artists that the way to compat internet piracy is nto
$220,000 fines, but rather to embrace the internet and use it to your advantage. There were absolutely no leaks of In Rainbows, making for a world wide release of the album, most of which were from an official source (er, I actually downloaded from Megaupload because my download fucked up and I couldn't reuse my activation code. Damn slow internet!). Also, remember that Year Zero was leaked and streamed in its entierety (sp?) on NIN website, as well as one of Wilco's albums. Kid A was leaked intentionally (I think) 3 months before the release date, and it went no. 1 on the charts when it came out. Even illegal downloads aren't negative anymore. On many torrent sites, people claim that downloading an album gives them an insight into the band, and they will often buy the next few albums. Also, they are more inclined to go to their live acts.
But it seems that record labels are living in the past. Any illegal download is a sale lost, and they intend to milk the album of all it's worth, even if it means sending out a stern message to the world with heavy fines.
EDIT: It pains me to see what journalism has come to: making as much controversy as possible. Like when IGN AU gave Halo 3 an 8.8 just to provoke a few fanbows. Anyway, I'll post the related news article in a new post.
EDIT 2: And I agree with you Z, the BBC guy does raise some good points. But his favourite album is Pablo Honey, so in the end when he says "Maybe they need someone to tell them their output is getting a bit samey now and isn't actually that good, and maybe they should try something else.", it shows a bit of angst to the electronic side of Radiohead, as though In Rainbows is a bit like Hail to the Thief, it is noticeably different, and it is very unlike Kid A and Amnesiac.
EDIT 3: I paid naught for the download, but I'll be buying the discbox soon, hopefully.