Listener Determined Download Prices?

Radiohead

Interesting story about Radiohead’s new release, "In Rainbow’s."

Their pricing scheme for downloads is designed to give the Music Industry — especially major labels — fits. According to their website, IT’S UP TO YOU.

Notes Salon:

"This weekend the band announced that its new album, called "In Rainbows," will
go on sale on Oct. 10. They still haven’t signed with a label, and the album
won’t be available in record stores nor on iTunes or any other online music
shop. You’ll find it only on the band’s site, and if you’re looking for a
digital version, the price is very attractive: Whatever you’d like to pay.

You can pre-order the new album here.
Click to purchase the download and you’re presented with a simple screen at
which you’ve got two boxes to fill in, quantity and price (in pounds). "It’s up
to you," the site says."

For those of you who, like me, prefer the physical media, you have a high priced, rpemium option:

"If you’d like something physical, the band is also selling "In Rainbows" in
something it calls a "discbox," a beautiful package that includes a CD, two
vinyl records, digital files, album artwork, and lyrics booklets. It sells for
40 pounds, about $81 (the price includes shipping anywhere in the world). If
you’ve got a Radiohead superfan in the family — and who among us doesn’t? –
your holiday shopping just got easier."

(Additionally, I see a lot of other Econ bloggers have weighed in on this natural experiment:  Free Exchange, Mankiw Blog, Truth on the Market, Freakonomics, Long Tail & Marginal Revolution . . .)

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