[atlantaprog] Re: Radiohead once again changing the rules...

According to another article I read on this, when someone buys a song for $1 
from iTunes, Apple keeps about 30c and the record co gets 70c, of which 8 to 
14c goes to the artist.  So for a $10/10 song album the artist gets a maximum 
of $1.40, which is roughly the same for a physical cd sold in a shop for $15.  
So if half the fans download this for free and half pay only $5, RH gets $2.50 
which is far better for them.  And that's disregarding the idea that many fans 
will get this $75 box set with the 2 cds and 2 vinyl LPs, which (minus 
shipping/handling/production costs) is pure gravy for them.  And those who 
download even for free off their website have to register so they get valuable 
marketing contact info for them to promote tours, future records, merch, etc.

It's a stroke of genius for RH.  And the same indy, bootstrap idea helps 
unknowns take it to a higher level.  My only question is, can you use this idea 
to run the whole path, from unknown to RH's level?  I suspect the large record 
cos are still useful for getting you the exposure from low-level to hugely 
famous, but at the bottom and top ends you probably don't need them.

BK

Andrew Tegethoff <ategethoff@xxxxxxxxxxx> wrote:    .hmmessage P { margin:0px; 
padding:0px } body.hmmessage { FONT-SIZE: 10pt; FONT-FAMILY:Tahoma }  Hah!  
Welcome to the future, bitchez!  
  
 Seriously though, this move is garnering this level of attention because it is 
a huge thumb in the eye of the record industry as it has existed for a century. 
 This really is the breakthru event it's being hyped as -- an artist of this 
magnitude shunning the entire system is nothing to sneeze at.  I mean, even 
Prince had to go back to the well after a bit.  I don't know that RH will.  I 
think they've got the biz smarts and the artistic street cred to make this work.
  
 I'm all for it.  I'll definitely get the record, don't know if I'll DL or buy 
the boxset. 
  
   




  
---------------------------------
 
 > Date: Tue, 2 Oct 2007 02:24:45 -0400
> From: ecartis@xxxxxxxxxxxxx
> To: ecartis@xxxxxxxxxxxxx
> Subject: atlantaprog Digest V4 #135
> 
> atlantaprog Digest Mon, 01 Oct 2007 Volume: 04 Issue: 135
> 
> In This Issue:
> [atlantaprog] Radiohead once again changing the rules...
> 
> ----------------------------------------------------------------------
> 
> From: Allen Welty-Green <agmedia@xxxxxxxxxxxxxx>
> Subject: [atlantaprog] Radiohead once again changing the rules...
> Date: Mon, 1 Oct 2007 12:50:09 -0400
> 
> Record labels? Who needs 'em?
> http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/01/ 
> bcnradio101.xml
> 
> Radiohead to give away new album
> By Angela Monaghan
> Last Updated: 4:51pm BST 01/10/2007
> 
> Shane Richmond: It's been done before, but this time it is Radiohead
> 
> In a break from industry tradition the UK band famous for hits 
> including Creep, Paranoid Android and Karma Police, has told fans 
> "it's up to you" what they pay to digitally download the album.
> 
> This isn't the first time that an artist has opted to charge nothing 
> for its album, but the move is significant because Radiohead remains 
> one of the biggest bands in the world.
> 
> Radiohead is free to sell its album directly from its official 
> website because it is no longer tied to a record label. So far the 
> album is only available to pre-order from the website, where it can 
> be downloaded on release on October 10.
> 
> While loyal fans are likely to want to pay the band something, 
> customers could opt to pay as little 45p - the credit card handling fee.
> 
> advertisement
> The album is also available separately as part of a £40 box-set which 
> includes the album on CD, two vinyl records, a CD with additional 
> songs, photos, artwork and lyrics.
> 
> It is Radiohead's first album since Hail to the Thief, which was 
> released in 2003 after which the band's contract with EMI/Capitol 
> expired.
> 
> It is likely that many of its millions of die-hard fans will be 
> unable to resist buying the box-set, available in December, while 
> Radiohead will not be required to share its profits with either a 
> record label or shops.
> 
> Radiohead could even benefit from those who ignore the box set and 
> choose to pay nothing to download the album from Radiohead's online 
> shop, where they will be required to register their details and 
> therefore become targets for future marketing campaigns.
> 
> Free albums also drive demand for live tours, which translate to 
> pound signs for the artists behind them. A great example of this is 
> Prince, who in July gave away his album 3121 for free in the UK 
> through the Daily Mail.
> 
> He subsequently announced 21 tour dates in London, all of which sold 
> out.
> 
> Radiohead has the financial welly and is sufficiently well-known to 
> be confident enough that the move is a risk worth taking, but it 
> might also become an answer for those lesser known bands that 
> struggle to be signed by a record label, or are reluctant to share 
> their profits.
> 
> ------------------------------
> 
> End of atlantaprog Digest V4 #135
> *********************************
> 



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