On last weeks Gen Y marketing Podcast (oh yeah, that’s cross-promotion) we mentioned how Radiohead were offering their latest album, In Rainbows, online, DRM-free and users could determine how much the paid for the album. No really, it was up to the people!
I am embarrassed to say, I paid $0, but in my defense, I just wanted to see if you could pay nothing. I am not a Radiohead fan and will never listen to the album (I guess I should probably have deleted it already).
A Report from the Times in the UK, said that 1.2 million people "bought" the album, and a readers poll indicating that the average purchase price was about $9-$10 AU. That’s about $10 million that Radiohead will get in revenue, revenue that they will not have to share with a record company. I bet this has been their best payday for awhile. If contracted to a record company, the band would have had to sell 10 times that number of physical albums to collect the same profit.
Its nice to see that Radioheads faith in their fans has been rewarded. Just goes to show that if you give a little you receive a little. Ten millions dollars little.