Rocker Dave Matthews' indie record label ATO is the front-runner to distribute Radiohead's new album IN RAINBOWS in America. The British band are reportedly interested in striking a one-off deal with ATO Records after turning down offers from their former label EMI and coffee chain Starbucks' Hear Music offshoot. The CD release will follow a digital download project, where Radiohead offered fans the chance to buy the album online for whatever price they saw fit. XL Recordings, which distributed frontman Thom Yorke's solo album The Eraser, remains the favourite to land international rights to distribute In Rainbows. If Radiohead join ATO, their new labelmates would include jam band Gov't Mule, the North Mississippi All-Stars and My Morning Jacket.