With Radiohead, Less is More
This post was published 2 years 4 months 4 days ago which may make its actuality or expire date not be valid anymore. This site is not responsible for any misunderstanding.Seems like Radioheads name your own price model has been able to net him more money then if he went through traditional retail channels – even though the average album price was $6.
Radiohead’s name-your-own-price sale of its new In Rainbows album has generated lots of commentary, especially since comscore released data claiming that 62% of customers set their price at zero, with the remaining 38% setting an average price of $6, which comes to an average price of $2.28 per customer. (There are reasons to question these numbers, but let’s take them as roughly accurate for the sake of argument.) [...] To see why this might be true, imagine that there are 10 customers willing to pay $10 for your album, 100 customers willing to pay only $2, and 1000 customers who will only listen if the price is zero. (For simplicity assume the cost of producing an extra copy is zero.) If you price the album at $10, you get ten buyers and make $100. If you price it at $2, you get 110 buyers and make $220. Lowering the price makes you more money.
Buy an Album for $2?! Sign me up! I think prices like that would kill all piracy.
agreed… shit, I’d even pay upwards of $10 if i knew for sure the artist was getting the money and not the money hungry lawyer pushin suits… in the mean time I will continue to steal music… and pay for concert tickets ;)
“I’d even pay upwards of $10 if i knew for sure the artist was getting the money and not the money hungry lawyer pushin suits” My thoughts exactly. I don’t like Radiohead, but I hope this pushes artists towards creative ways to get rid of the middle distributor.
Radiohead isn’t a ‘him,’ it’s a ‘them.’
The same principle applies to gas prices too! We have a two gas stations right across from each other, one is Rickers and the other one is called Swifty. The two stations are about the same size, the only difference is, swifty always has a lower gas price, it’s usually 3 pennies cheaper than most places around here.
There are times where they will go all balls out an lower the price from 3.00 / 2.99 or whatever the high ass price is at the time, they’ll lower it to 1.50 a gallon or 1.00 a gallon etc, and they cash in HUGE people drive from all over just to get cheap gas, and they usually have to close down for the day because they are bone dry, but their pockets are fat afterwards.
I don’t know why people seem to think a higher price on things will equal more revenue than lowering the price. The radiohead album is the exact same way.
I think AllOfMp3 sort of demonstrated that a long time ago. Except this time the band gets all the money.