On October 10th, 2007, Radiohead released its latest album. The twist is that they decided to circumnavigate the standard process put in place by the big record labels. They chose to only market and sell their album via their website. Also, they designed the process so that the user pays whatever they wish....anything.... even $0.
So now a month later, how is Radiohead shaping out? Ingram 2.0 reports "Who Paid What" for Radiohead's new album, In Rainbows.
People have paid everywhere 0 to 99 pounds (almost $200). The average price people paid was around 3 pounds.
At first glance, this may look like a small figure, but on average, if they sold the album through the traditional channels, they would have made about .5 pounds per album. So the average 3 pounds per album is quite an increase in overall sales! Genius!
1 comment:
I think the "pay what you want" campaign was a success for Radiohead. At first I thought it would be a total disaster where millions of fans would pay $0 and the band would loose money in the end. However if the average paid for the album came out to 3 GBP then they didn't do too bad.
My first impression was that the majority of Radiohead fans were cheap like me and would jump at the opportunity to pay nothing for one of their favorite band's albums. I'm sure there were a great number of fans that did just that but the fans that didn't were the ones that made up the difference. I guess if one person pays $200 for an album, that cancels out a whole lot of people that paid nothing. This is why we see the average of the whole campaign come to $6.21 (3GBP) per album compared to the traditional $1.04 (.5GBP). This idea Radiohead had for this new album was truly genius!
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