Radiohead Tells Fans To Name Their Own Price For Latest Album Downloads; Gives Them A Reason To Pay
from the new-business-models dept
The band Radiohead is apparently coming out with a new album; the first after its original record deal was completed. It appears that, like many other musicians, they're realizing that the traditional recording industry business model doesn't quite make sense for them. While there was some buzz about an apparent hoax website about the band's new album, it turns out the real thing is a bit more interesting. That's because Radiohead is doing two smart things. It's telling fans they can name their own price for digital downloads. You just pay the band however much you think the downloads are worth and they'll be happy. But that's not all (though, that's what most folks are focused on). Rather than just offering up the content, they're also trying to give people a reason to actually buy something else. In this case, it's a "discbox," which will include the new album on both CD and vinyl, as well as an additional CD of seven extra songs and photos, artwork and lyrics. The whole thing will be packaged in a nice container. In other words, the band is following in the footsteps of folks like Trent Reznor, in realizing that the music is promotional for other stuff -- and you can still sell stuff if you make it worthwhile. In this case, Radiohead isn't really selling the "music." After all, you can get that for free. They're selling the full collection of stuff that comes with the music. Funny how it's the musicians, and not the record labels, who seem to realize that adding value and getting people to pay for it is a business model that beats suing fans.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: business models, music
Companies: radiohead
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Labels facing A-list artist defections
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Probably because musicians are the ones more likely to be connected to the fans, and have a better sense of how to appeal to the fans, than the music labels who operate only on numbers and the letter of the law.
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The band only gets 72 cents
Of the $19.99 you spend for a music CD the band only gets about 72 cents. The rest goes to the record label. So from the perspective of the band, CDs are really only good for publicity. The majority of their money comes from shows, and if they're really good, endorsements.
The bottom line is that people listen to what they like and in the digital age the middle man record labels aren't needed to help us find good music. That's what scares them and that's why they're making a last ditch effort to appear useful.
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Good...
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Re: Good...
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Free Music
http://www.belfasttelegraph.co.uk/entertainment/music-gigs/news/article3015928.ece
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As to the fancy package thing, well, it's a good theory, but problematic in the long run, because: 1. A big draw for such packages is the novelty/collector factor; if everyone started doing it that cachet would disappear quickly, and 2. the trend is so thoroughly *away* from delivery on physical mechanism that it's just too hard against the tide.
Now, if someone can figure out a nifty combination of the two: download the basic tracks from the artist on the shareware model, and/or pay a set price for something extra, worthwhile, not gimmicky, and not file-shareable. Not sure what that is (stickers and t-shirts only get you so far), but whoever does will have the magic formula.
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I will buy this from Radiohead
Since its
1.) Not a product of any RIAA/MPAA affiliated companies and
2.) Not encumbered with DRM
I will happily pay for it. I quit buying music the day the music cartels started suing people (and I never will purchase anything from them again) but if I can buy it directly from the band, I will happily part with my money.
Go Radiohead!
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I still maintain that the whole RIAA strategy isn't about the money. It is about controlling the market. The industry has gotten used to a market that they control from top to bottom. They decide who gets airplay, who gets promotions, and how much performers get paid (or don't get paid). In industry had gotten quite cozy with their little model of formula Rap and boy/girl bands.
The Internet in general threatens loss of control. Musicians might once again be encouraged to be creative and break molds. Most business models want predictability, not creativity.
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Re: Labels facing A-list artist defections
Forward thinking bands like Radiohead and 9-Inch Nails will eventually host favorite unknown groups off their better funded web sites. They'll be giving exposure and making a few bucks off bands that are their opening acts.
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But then, hey - maybe I'll like some of their new stuff, perhaps I'll just head over to their site after work and download a few tunes, never know what I might end up buying, eh?
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@ #7
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Re: Good...
Yes, the A-listers can go solo and make good money. The unknowns have a much harder row to hoe. I'm interested in seeing how it all shakes out. I'm predicting record labels will start trying to leverage new artists into long-term contracts with very little up-front money. If the band does poorly, no loss, and if the band does well, they're locked in to a contract.
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Let me take a wild guess why this is so:
1 - musicians can't afford to sue everybody?
2 - they are human beings just like me and you.
3 - they don't have a monopoly on music distribution, never had one before and probably don't want one now either.
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Re:@ #7
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as a really good musician, but a lousy businessman, this strikes me as wrong. for a lot of us, the music is the goal, not the money. if the money comes, great! if not, we carry on, cuz the music in us, and expressing it, is what matters. there is no, "other stuff."
actually, as i think about it, there is, "other stuff." like t-shirts, posters, oven mitts. but, you don't make music to sell oven mitts. you sell oven mitts to make music.
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Re:
The thing is the big labels could change their business model and still make money but they would lose their controlling stranglehold on distribution and they would not make as much money.
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I love the idea of physical media being the thing that justifies the price, such as foldout LP (that would be vinyl, kids...) artwork. There are a ton of collectors out there. If you grew up with double album sets and reasonably sized posters, you know that CD Packaging was a letdown ... Of course, in 30 years we'll get to deal with nanotechnology based physical copying :-) That's going to make audio/video copying look like a small warmup act.
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Robert Fripp Has Been Doing This For Some Time
Fripp began selling directly to his fans a few years ago. You can get full live shows in FLAC or MP3 format. Plus the site provides the PDFs to print out CD Covers.
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Re:
"the music is the goal, not the money"
"you don't make music to sell oven mitts. you sell oven mitts to make music."
If this is your attitude, then there shouldn't be a problem with Radiohead's pay-what-you-think-it's-worth model. But if you want to be able to make music for a living instead of slaving away at Acme Oven Mitts all day, then maybe work something out to sell branded t-shirt, posters, and uh...oven mitts.
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Why does this remind me of "meet the new boss, same as the old boss"?
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Re: The band only gets 72 cents
That is what your Business major buddy should learn from this exercise.
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Re: The band only gets 72 cents
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the RIAA is clueless...
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What's missing?
BTW, the DGMLive model doesn't include a voluntarily set price. As much as I think Robert Fripp is an original thinker and one of fairly few established artists trying to work outside the industry box, and I love that he's selling live recordings sourced from bootleg and other unofficial recordings, he didn't arrive at anything as different as this.
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Re:
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Street Performer Protocol
i.e.: "When a trusted third-party escrow service receives $X in donations on my behalf, they will automatically release my next CD of music for free downloads."
All they have to do is set X to something higher than they got paid by the record companies. Just not too high... :-)
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Where'd the 72 cents come from?
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Only thing really missing is the cost of making th
Its a decent idea, just remember that an established artist does not work as hard to market or fund their enveavor.
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More Road To Go
thanks to be open minded. Actually I think that technology today offers a whole new way of thinking about creation, distribution, consumming and maybe let us rethink the way the system works.
Though we need much more way to go to make it a general schema even if it works for more than a decade in some branches (say free and open software - www.fsf.org) of our economy.
The thing is that such a new initiatives need a support if we think that this is worth the idea, because the oposition from big companies will be great.
p2pfoundation.net is a nice site that gives a whole bunch of new ideas of functioning in almost every domain of our society. Also the Jeff Vail's book (http://www.jeffvail.net/) 'A Theory Of Power' (you have a choice to buy the book or read it for free :-) is a lot about new models. Maybe there are more ? You know something about it ?
Once more cheers Radiohead.
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WHO CARES BOUT THE ALBUM
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Shareware Music
This is cool news for a Radiohead fan like myself. We came up with a similar concept with my own band, Blanket. We dubbed it Copy Encouraged music to poke fun at the Copy Protected music system that was out there at the time. It's been working fine for us and other local bands are slowly starting to use our concept as well.
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Vinyl
Ended up downloading a pirated copy to listen to on my iPod, as I'd already paid >$60 for the music.
I love this concept.
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Re: Where'd the 72 cents come from?
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Credit where due
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not quite ...
Of the $19.99 you spend for a music CD the band only gets about 72 cents. The rest goes to the record label. "
The clerk at the record store gets some of that money, as does the store's landlord, and the owner, and the guy who drove the delivery truck, and the people at the label's warehouse, etc. etc. Also the label has costs to recoup - the million-dollar video without which no records would sell, the payola to radio, the advertising, the recording which took so long because the band are doped-up hacks that are somehow proud of having written half the album in studio at $10000 per day, etc. etc. etc.
The labels are far from angels, but a lot of the artists have been their own worst enemies in a business sense. If bands were more stable and acting like adults, the labels would have a lot less losses to cover and so goes the cycle.
Two sides to every coin. Keep on rockin'.
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Re:
dr. dre said "we came a long way up from selling tapes out of a trunk to moving this far up"
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In Rainbow
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Re: Labels facing A-list artist defections
I for one hope that the biggies keel over sooner rather than later. Let the /art/ists decide how to distribute what they've created and the beholder decide what is art.
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Re: Labels facing A-list artist defections
http://www.rollingstone.com/news/story/6558540/walmart_wants_10_cds
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new paradigms
I have been arguing for a decade that this sort of thing would happen. Our expectations in the early days of the Internet were a bit enthusiastic and overly optimistic, but things finally are coming around as I describe in my paper on the economics of information goods, "Pseudo-Intellectual Property."
Fret not, weary artist! A-list acts will begin to sponsor up-and-comers in a kind of apprenticeship system. We will start seeing people like Trent Reznor developing stables of bands that they promote, train, and support.
If Trent Reznor becomes known for having awsome opening acts, demand for tickets to his shows will increase. He has an incentive to collect inexpensive and talented unknowns around him, and should be willing to expend some effort, time, and money, in order to discover them and nurture them.
Elton John's recent prattling notwithstanding, the Internet is driving this democratic shift away from corporatist elitism. The big labels have squandered their capital over the past decade.
Popular culture is stagnant. Independent film makers, musicians, and other artists are the future of entertainment, and I applaud Radiohead's decison. Bravo, lads!
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Radiohead marketing model
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I think radioheads idea rocks and i know it works.
Its great Check it out.
http://www.parrysongs.co.uk/buskernomics.html
http://www.parrysongs.co.uk/music.html
w ww.parrysongs.co.uk
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nothin new
This isn't the first time an artist has done it. Back in 79' Keith Green did it. I copied this from his wiki page
In 1979, after negotiating a release from his contract with Sparrow, Green surprised many in the music industry by refusing to charge money for concerts or albums. Keith and Melody mortgaged their home to privately finance Green's next album, So You Wanna Go Back To Egypt. The album, which featured a guest appearance by Bob Dylan, was offered through mail-order and at concerts for a price determined by the purchaser. As of May 1982, Green had shipped out more than 200,000 units of his album – 61,000 for free. Subsequent albums included The Keith Green Collection (1981) and Songs For The Shepherd (1982).
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Re:
But I agree, it's still overpriced, even with these functions.
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Kurt Cobain said they were dinosaurs 15 years ago.
......ok, a bit rambling and utopian maybe, but the possibilities are endless here if the market is about being a good band that makes good music and therefore gets the spotlight for being an inspired new band instead of just being lucky and good enough(and lets face, alot of times pretty enough) to be picked up by a major label for fitting all of their cookie-cutter constraints.
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Big Labels are bad, music should be free- You Soci
Because Lars Ulrich has become a successful multi-millionaire he should relinquish his ownership of his creations and just give everthing away? Nonsense! If you murder someone it doesn’t matter if you are a grandmother or a college student, you are still accountable to the law. Do you think the RIAA should target only certain types of people to sue (non-grand mothers and college students) or should they just apply the laws of theft equally? Stealing is against the law in every country. Why is it OK for computer companies to sue people who pirate their software and the Movie industry to sue people who pirate their movies and not OK for the music industry to protect the theft of their products?
These are all rhetorical questions of course, most people here don’t have the mental capacity or common sense to see all sides of an issue and therefore have the inability to apply rational, objective critical thinking to their decision making and formation of opinions.
If you can rationalize that stealing music is OK and is different from stealing apples because the big bad record labels are already rich and are mean evil people for seeking legal remedies for the theft of their goods then it’s a complete waste of time to try and debate the issues with you.
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Re: Big Labels are bad, music should be free- You
Well, then you've been reading some other site. We never said that the RIAA was evil.
Since when is being against theft deemed such an offense?
Never. The problem is that you're confused. Infringement is different than theft.
If you owned an apple stand and person after person came up and kept stealing your apples, you tell me you wouldn’t do any thing to stop it?
Apples are a tangible product. If someone steals the apple, you no longer have it. If someone *copies* music, that's not true. It's a very different situation. That doesn't mean it's legal, but it does mean that it's different... and it also means that there are other business models you can apply.
These are all rhetorical questions of course, most people here don’t have the mental capacity or common sense to see all sides of an issue and therefore have the inability to apply rational, objective critical thinking to their decision making and formation of opinions.
Funny. We discuss this stuff all the time -- and we do it taking into account all sides. But we also are intellectually honest about it. That means not calling infringement theft and not resorting to emotional arguments, but focusing on economic ones.
We also don't insult people's "mental capacity."
If you want to play by those rules, I'd have no problem debating you and showing you why you're wrong.
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Because Lars Ulrich has become a successful multi-millionaire he should relinquish his ownership of his creations and just give everthing away? Nonsense! If you murder someone it doesn’t matter if you are a grandmother or a college student, you are still accountable to the law. Do you think the RIAA should target only certain types of people to sue (non-grand mothers and college students) or should they just apply the laws of theft equally? Stealing is against the law in every country. Why is it OK for computer companies to sue people who pirate their software and the Movie industry to sue people who pirate their movies and not OK for the music industry to protect the theft of their products?
These are all rhetorical questions of course, most people here don’t have the mental capacity or common sense to see all sides of an issue and therefore have the inability to apply rational, objective critical thinking to their decision making and formation of opinions.
If you can rationalize that stealing music is OK and is different from stealing apples because the big bad record labels are already rich and are mean evil people for seeking legal remedies for the theft of their goods then it’s a complete waste of time to try and debate the issues with you.
Well, u are going way off the topic. What i seen discussed is the fact that
1)artist are being taken advantage of financially by the major labels, and musically as to the music they make and touring like mad to make ends meet.
2)how established artists could go independent of label companies via the new media and start a apprenticeships system to bring up new talents
As to your point raised about "stealing music" obviously morally and financially it is "wrong", everyone knows that, but the industry has to deal with what the people want. And what people want is more value for money, lower cost of the product, easier digital music for their ipods and computers which sums up the two points mentioned above.
And lastly, insulting others "mental abilities" to make a point doesn't make you smarter, it's just make people dislike you. Nobody has the ability to see all side of everything, unless you are involved in the music business as a artist, music label employee and a consumer, then you can safely say all side of the issue, otherwise you are just outside looking in. How's that for critical thinking?
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Re: Big Labels are bad, music should be free- You
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By your thought process the following would be wrong no?
What if you bought an apple, and then planted it's seeds to grow an apple tree? Would you then be a thief because you used the persons apple seeds to get yourself a tree, and in effect get yourself a $hit load more apples?
THAT IS WHAT COPYING MUSIC IS LIKE!
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