The Real Value of Music

From Wired Magazine. David Byrne and Thom Yorke on the Real Value of Music

"It seemed like a crazy idea. When Radiohead said it would release its new album, In Rainbows, as a pay-what-you-will digital download, you'd have thought the band had gone communist. After all, Thom Yorke and company are one of the world's most successful groups — a critical darling as well as a fan favorite for nearly 15 years. They hadn't put out a new album in more than four years, and the market was hungry for their next disc. So why would Radiohead conduct such a radical experiment?

It turns out the gambit was a savvy business move. In the first month, about a million fans downloaded In Rainbows. Roughly 40 percent of them paid for it, according to comScore, at an average of $6 each, netting the band nearly $3 million. Plus, since it owns the master recording (a first for the band), Radiohead was also able to license the album for a record label to distribute the old-fashioned way — on CD. In the US, it goes on sale January 1 through TBD Records/ATO Records Group."

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