Radiohead Revolutionizing Record Sales
Radiohead’s seventh studio album, “In Rainbows”, was made available on the band’s website to download October 10th. The band has embarked on a new marketing strategy that allows the buyer to name their own price in a pay-what-you-feel-it’s-worth situation.
“I didn't pay anything to download Radiohead's ‘In Rainbows’ last week. When the checkout page on the band's web site allowed me to type in whatever price I wanted, I put 0.00, the lowest I could go. My economist friends say this makes me a rational being,” said Eduardo Porter of the Herald Tribune.
When Radiohead announced it would allow fans to pay whatever they wanted, about a third of the first million albums paid nothing, although some paid more than $20 according to a British survey.
The members of Radiohead are relying on their reputation and music to sell their albums instead of advertising and marketing. Even though a third of the records are being given away for free their record sales won’t be hurt too badly. Radiohead has a die hard fan base that will buy everything they release, including an upcoming deluxe edition enhanced box set — which ships December 3 with bonus tracks, double vinyl, and extravagant art for $80.
Industry insider and Fader magazine founder, Jon Cohen, says, “In Rainbows' unique distribution and cost methods represent a huge ‘screw you’ to the majors.” From his point of view, the independent launch tells the majors, "We don't need you. We have no faith in your methods."
Some economists have said Radiohead’s new marketing strategy is essentially just the universal idea of tipping.
The only complaint so far is the low bit rate of the downloads available. If you’d rather pay the full amount for “In Rainbows”, the album should be available on shelves in 2008.
Sources:
http://weblogs.baltimoresun.com/entertainment/critics/blog/2007/10/thoughts_about_the_dying_recor.html
http://www.browardpalmbeach.com/2007-10-18/music/in-rainbows-leads-to-a-digital-pot-of-gold/
http://www.villagevoice.com/music/0742,harvilla,78082,22.html
“I didn't pay anything to download Radiohead's ‘In Rainbows’ last week. When the checkout page on the band's web site allowed me to type in whatever price I wanted, I put 0.00, the lowest I could go. My economist friends say this makes me a rational being,” said Eduardo Porter of the Herald Tribune.
When Radiohead announced it would allow fans to pay whatever they wanted, about a third of the first million albums paid nothing, although some paid more than $20 according to a British survey.
The members of Radiohead are relying on their reputation and music to sell their albums instead of advertising and marketing. Even though a third of the records are being given away for free their record sales won’t be hurt too badly. Radiohead has a die hard fan base that will buy everything they release, including an upcoming deluxe edition enhanced box set — which ships December 3 with bonus tracks, double vinyl, and extravagant art for $80.
Industry insider and Fader magazine founder, Jon Cohen, says, “In Rainbows' unique distribution and cost methods represent a huge ‘screw you’ to the majors.” From his point of view, the independent launch tells the majors, "We don't need you. We have no faith in your methods."
Some economists have said Radiohead’s new marketing strategy is essentially just the universal idea of tipping.
The only complaint so far is the low bit rate of the downloads available. If you’d rather pay the full amount for “In Rainbows”, the album should be available on shelves in 2008.
Sources:
http://weblogs.baltimoresun.com/entertainment/critics/blog/2007/10/thoughts_about_the_dying_recor.html
http://www.browardpalmbeach.com/2007-10-18/music/in-rainbows-leads-to-a-digital-pot-of-gold/
http://www.villagevoice.com/music/0742,harvilla,78082,22.html
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