Is Radiohead’s online release a viable business model?
by 
Mike on November 18th, 2007
The official compact disc release of Radiohead’s ‘Rainbows’ album is January 3rd.
It will be very interesting to see how the album fairs in traditional outlets, considering fans have had months to be able to get it for their set price - roughly 62% set their price at free, while roughly 38% paid an average of $6. An overall average of about $2.28 per listener. Not bad.
There have been many fans and critics of this model and approach.
I will reward myself no points for even mentioning Gene Simmons in this post, but his quote is a good launching pad for my next point. Here’s what Gene had to say about the Rainbows online release,
“That’s not a business model that works. I open a store and say ‘Come on in and pay whatever you want.’ Are you on fucking crack? Do you really believe that’s a business model that works?”
So, the question is: what do artists usually pull in per album when releasing via the traditional means? - released by a major label, through record shops (and more disturbing) exclusively through big box stores.
From what I’ve read, and this is where I need reader’s imput, bands can expect to get 12% from album sales. So, if Radiohead releases Rainbows on January 3rd at 10 beans per copy, the band might see $1.20 per album sold. Let’s say Radiohead has negotiated a killer deal and see’s 20% of each copy sold…they’ll pocket $2.
So…with their online release they’re making roughly $2.28 per copy.
Mr. Simmons…??
It might look as though this business model might work.
Discussion?
Tags: business_model, pay_what_you_want, radiohead, rainbows| 3.0 |
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POSTED IN: Albums, Big Apple News
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