So it is official, though many may already know it, but Radiohead, the British cult favorite band, has quite possible revolutionized the music industry itself. The band released the album "In Rainbows" recently, and the catch is that they released it online only. This self-release is only available from their website (http://www.radiohead.com/deadairspace/), and the therefore completely bipassed the need for a label altogether. One can either download the CD, or buy a kit which includes a physical copy and a bundle of fun items as well. It gets crazier. When purchasing the downloadable version, one chooses his own price! Now, I'm not telling how much I spent personally, but your price is however much its worth to you. The band is characterized by trying to be as different as possible, which is obvious by simply looking over their site.
This could potentially destroy the need for record labels altogether, but this will not likely happen, but only give artists new options. One important factor is the fact that one must have a name for oneself to make much of a splash this way. To read a much better summary of the music industry and the effects this has, check out http://www.newsweek.com/id/57337