Radiohead are an English alternative rock band, considered as one the most influential bands of our time. The point is that they are not only sound innovative, they also do business innovative.
The way they promoted and sold their 7th album, named "In Rainbows", was the proof of their innovative way of thinking. The album was released through their website, www.radiohead.com, in 2007 and was offered as a pay-what-you-will digital download, giving to their fans the option to pay from 0 to 99 English pounds! As the site advised, "it's up to you"!
That was a really unusual and savvy business move, having in mind that Radiohead hadn't put out a new album in more than 4 years, and the market was really looking forward for their music! So, only in the first month of the release, about a million fans downloaded In Rainbows. Roughly 40 percent of them paid for it, at an average of $6 each, netting the band nearly $3 million. Plus, since they own the master recording, Radiohead was also able to license the album for a record label to distribute the old-fashioned way — on CD. We cannot though have a clear picture of their movement, since the band did not release official sales figures, claiming that the internet-only distribution was intended to boost later retail sales.
As Radiohead's lead vocalist, Thom Yorke stated: "The way we termed it was "our leak date". Every record for the last four — including my solo record — has been leaked. So the idea was like, we'll leak it, then."
Radiohead's eighth album, "The King of Limbs", was digitally released in 19th February 2011, but this time on a fixed price. They have once more changed their business model; the album will be available in standard CD, vinyl, and download formats, or as a unique deluxe edition "newspaper album", which features numerous extras.
What would be next? Only Radiohead know!
Enjoy!
The way they promoted and sold their 7th album, named "In Rainbows", was the proof of their innovative way of thinking. The album was released through their website, www.radiohead.com, in 2007 and was offered as a pay-what-you-will digital download, giving to their fans the option to pay from 0 to 99 English pounds! As the site advised, "it's up to you"!
That was a really unusual and savvy business move, having in mind that Radiohead hadn't put out a new album in more than 4 years, and the market was really looking forward for their music! So, only in the first month of the release, about a million fans downloaded In Rainbows. Roughly 40 percent of them paid for it, at an average of $6 each, netting the band nearly $3 million. Plus, since they own the master recording, Radiohead was also able to license the album for a record label to distribute the old-fashioned way — on CD. We cannot though have a clear picture of their movement, since the band did not release official sales figures, claiming that the internet-only distribution was intended to boost later retail sales.
As Radiohead's lead vocalist, Thom Yorke stated: "The way we termed it was "our leak date". Every record for the last four — including my solo record — has been leaked. So the idea was like, we'll leak it, then."
Radiohead's eighth album, "The King of Limbs", was digitally released in 19th February 2011, but this time on a fixed price. They have once more changed their business model; the album will be available in standard CD, vinyl, and download formats, or as a unique deluxe edition "newspaper album", which features numerous extras.
What would be next? Only Radiohead know!
Enjoy!
