Music At Your Own Price

1380 Words Sep 9th, 2015 6 Pages
Radiohead: Music at Your Own Price
Introduction: Apple’s iTunes launched in 2001 transformed distribution and consumption of recorded music setting the trend for the future. The proliferation of online music subscription services and other music sharing services exerted a great pressure on the conventional music distribution business model. Combined with this transformation, piracy of digital music had a profound impact on the whole industry. These worsening conditions in the market place for recorded music forced both established and upcoming new artists to experiment with new ways of selling their music.
Radiohead, one of the most popular and artistically significant contemporary bands of this time, attempted a significant break from the industry standard of fixed price music. In 2007, Radiohead had planned release of its new album, “In Rainbows”, exclusively as a digital download on the band’s website, with an innovative pricing option of allowing its buyers to decide on how much they wanted to pay for the music. Radiohead’s “name-your-own price” pricing model for its new album generated an intense speculation about the future of recorded music industry. The key issues with Radiohead’s innovative distribution model and my views after an analysis of these issues are as follows:
Was this a good pricing strategy for Radiohead?
The digital economy, as we learned in class (videos), is exerting a great pressure on the traditional firm-imposed pricing strategy. Firm centered…

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