By: Michael Pound, found at times online 10/20/2007 Michael Pound can be reached online at mpound @ timesonline.com.

The shot was fired, quietly, on Oct. 1.2007

Trent Reznor of the band Nine Inch Nails

It was a short announcement on the Web site of English rock band Radiohead, stating that the band had just completed its first album since 2003. A link directed readers to another page, and there it was - the long-anticipated album "In Rainbows" would be available only as a download until the end of the year.

There was a lot of interest generated by the pricing scheme for the download: The band suggested that listeners pay whatever they thought the recording would be worth. But the larger statement was that one of the biggest bands on the planet is apparently finished with traditional record companies and traditional means of distribution.

The band hasn't announced sales figures, but reports estimate that "In Rainbows" has been downloaded about 1.2 million times since it was released Oct. 10.

It was also hard to miss announcements from other artists that followed the release of "In Rainbows." Nine Inch Nails leader Trent Reznor posted a short message on that band's site Oct. 8 stating that Nine Inch Nails would be operating as a free agent from this point forward.

"I have been under recording contracts for 18 years and have watched the business radically mutate from one thing to something inherently very different," Reznor wrote. "It gives me great pleasure to be able to finally have a direct relationship with the audience as I see fit and appropriate."

Reznor didn't say how his band's music would be released in the future, but it seems there's a good chance he'll be taking advantage of the new business model in the recording industry that emphasizes digital downloads and circumvents record companies and record stores.

According to Nielsen Soundscan, which tracks record sales in the United States, going digital is increasingly the way to go. During the first six months of 2007, Apple Computer's iTunes music store, which sells all of its music as downloads, held the third-largest share of the country's retail music business, behind only Wal-Mart and Best Buy.

And, while sales of physical compact discs have dropped, sales of downloads have continued to increase, from 16.2 million copies of albums in 2005 to 32.6 million in 2006. The change is noticeable, whether you're talking about industrywide changes - the 2006 liquidation of national chain Tower Records, for example - or just talking with the owners of local record stores.

"Over the last couple of years, it's absolutely made a difference," said Lennie Estep, owner of Record Village, at 5519 Walnut St. in Pittsburgh's Shadyside neighborhood. "I think there's at least a whole generation that we've lost to music downloads, and the record stores just won't see them again."

Predictions of increasing online sales notwithstanding, Estep said he sees reasons to be hopeful for his side of the business in the future.

"The baby boomers tried downloads when they first bought that iPod, but I think they're coming back to the physical CDs," he said. "I hear it over and over - downloads are convenient, but they can't match the sound quality of a CD. In that sense, I think the worst is over."

THE BUYERS
How does the twentysomething generation - those who have had computers for their entire lives - view the debate? Surprisingly, there are still some traditionalists out there.

Terry Smith, 23, of Conway
"Downloading is easy, but I still like getting the actual CD," said. "You get the cover art, you see the liner notes - it's just a better package than with a download."

Smith, who said he listens to independent artists, also said he still enjoys the process of digging around in a used-record store.

"You never know what you're going to find," he said. "Doing that while you're sitting in front of a computer isn't the same kind of experience."

Izzrel Jardine, 29, Midland
Jardine prefers buying CDs over downloads because he's getting the package the artist intended.

"I have friends who download everything they listen to," Jardine said. "I understand that it's more convenient, but I feel like I'm supporting the artist when I go to the trouble to get out to a store and buy the actual CD."

Jardine thinks more and more artists will consider digital-only releases.

"I think it would make sense, especially with more established musicians," he said. "The big ones don't really need record companies anymore."

Dave and Beth Hradecky Ambridge
Dave and Beth are the ones the recording industry is worried about. Beth, 26, said she still buys CDs - usually at Best Buy - but she said she downloads just as much music from online stores or through file-sharing sites.

"I like it because it gives you a lot more freedom," she said. "I love having the ability to take tracks from all over the place and make your own mix CDs. You don't have to listen to the songs you don't like."

Dave, 25, expects Radiohead's approach will be copied widely by other artists.

"You'd get to have complete control over what you're recording, and you don't have to worry about what some record company thinks," he said. "And I'd bet you'd get to keep more of your money, since the company isn't taking a cut."

THE NEW SELLERS
There are plenty of options online if you're looking to buy digital music. Here are a few:

iTunes: The online music store established by Apple Computer as a partner for its iPod media players. Buyers pay by the song or by the album.
 www.apple.com/itunes 

eMusic: A subscription service that features a huge catalog of independent artists and a massive jazz collection. Unlike many services, the MP3 tracks downloaded from eMusic are compatible with any MP3 player.      www.emusic.com 

Rhapsody: A "tethered" download and streaming service, Rhapsody allows users to pay a subscription fee to download music to a portable MP3 player - but not an iPod - but does not permit burning copies of purchased songs to a CD.
www.rhapsody.com 

Zune Marketplace: Microsoft's answer to Apple's iPod/iTunes success. A Zune is Microsoft's portable music player; Zune marketplace is the online store where Zune-compatible music is purchased.
www.zune.net 

discover also the new ZUNE pro 

Amazon: The giant online retailer just launched its digital music service. Songs are a bit cheaper than on iTunes, and the company says its small catalog will grow.
www.amazon.com

Amazon MP3 downloads are only available for US citizens at this moment IF you are living in the US please follow this link: www.amazon.com/b?mp3

SELLING OUT
Total album sales (CDs, cassettes, LPs and digital albums)
2004: 666.7 million
2005: 618.9 million
2006: 588.2 million
Digital album sales
2004: 5.5 million
2005: 24.7 million
2006: 32.6 million
Digital track sales
2004: 140.9 million
2005: 352.7 million
2006: 581.9 million
Source: Nielsen Soundscan