A New Music-Distribution Business Model

The Consumer Electronics Association’s (CEA) Digital Freedom blog hails the success of Radiohead’s novel distribution tactic: 

“The data is in from Radiohead’s ‘name your price’ experiment, where the band allowed fans to download their album, ‘In Rainbows,’ at a price of their choosing. And just as we predicted, and have always known, most people aren’t pirates. If you give them value, and treat them decently, they will pay you. Its no longer theory, it’s a fact.” 

This particular angle is worth highlighting: 

“The sales from the band’s Web site alone exceeded the total sales for the band’s previous album, ‘Hail to the Thief,’ released by largely conventional means through a major label in 2003. 

This is all good news. Of course, Radiohead is an established band. This stunt would be much harder for a smaller group with less of a fan base to pull off.