Radiohead "only" get £1.08 ($2.25) per download

Lonyo

Lifer
Aug 10, 2002
21,938
6
81
http://www.pcpro.co.uk/news/13...st-1-per-download.html

That's about $2.25 or something for you people in the US.
That's on average per download.
How much of a CD sale are they likely to get (for the band + management?) after the retailers cut, labels cut, distribution, pressing and shipping costs?
Seems like they are not getting a bad return to me.
 
Jun 4, 2005
19,723
1
0
Originally posted by: Lonyo
http://www.pcpro.co.uk/news/13...st-1-per-download.html

That's about $2.25 or something for you people in the US.
That's on average per download.
How much of a CD sale are they likely to get (for the band + management?) after the retailers cut, labels cut, distribution, pressing and shipping costs?
Seems like they are not getting a bad return to me.

CD's are DOWNLOADED. All electronic, all profit, no label, little management, no cuts. Profit.

This of it this way: They made more money this way than they would under the RIAA.
 

FoBoT

No Lifer
Apr 30, 2001
63,084
15
81
fobot.com
i paid one pound and the .45 credit card surcharge thing

i don't really like them, i just did it to support what they are doing

there are a couple of the songs that aren't bad though

if a band i actually did like did this, i'd go at least "full price" that i'd paid for a CD in the past
 

Pugnax

Senior member
Jan 17, 2000
517
0
0
I was under the impression they were getting 100% of the return. Either way, looks like a good result; I didn't expect the average to be even that high. As the article states, increased sales of the $40 box set too (not counted in this average). Some good food for though for future economics papers.
 

djheater

Lifer
Mar 19, 2001
14,637
2
0
I paid $5 USD, whatever that worked out to on the exchange, when I did it.

That's what I consider a reasonable price for an album. Under that I feel like I'm getting a good deal.

I haven't paid more than that in about ten years, I'd guess.

(Except for small artists, bought at shows or something...)
 

brxndxn

Diamond Member
Apr 3, 2001
8,475
0
76
I paid 2 pounds.. I was worried about the exchange rate shooting through the roof by the time I was billed.. Who knows.. isn't that like $17 now?
 

Mark R

Diamond Member
Oct 9, 1999
8,513
16
81
That's pretty good going.

Isn't the artists' cut of a CD something like $.50 after RIAA, record company, retailer, etc. have taken their cut.
 
Dec 10, 2005
28,697
13,853
136
Originally posted by: Mark R
That's pretty good going.

Isn't the artists' cut of a CD something like $.50 after RIAA, record company, retailer, etc. have taken their cut.

The artist gets a certain cut (I think it's usually a percent) in royalties after everyone takes their cut - record company, distributor, producer, retailer, recording studio time, etc. But a lot of times, the royalties that the band makes are used to pay back the record company for studio time or money advanced to the band.
 

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
meh. I would pay 0. But I would also pay $60 to see their shows.
 

SludgeFactory

Platinum Member
Sep 14, 2001
2,969
2
81
The idea that "the band only get 47 cents/album" that has become internet lore isn't true for an established act like Radiohead at all. They're at a point in their career where they would be able to negotiate a deal with good royalty rates, probably better than $2.25/album.

But that's not to say that this is a failure. Besides getting a chance to test the waters, they got 2-3 million bucks before the CD release and a huge-ass mailing list out of the deal, not bad. They have a large cult fanbase waiting to buy anything they put on CD. Their situation is pretty unique, they're an ideal band to take this "risk."

The average price was dragged down here by non-fans, attracted by widespread publicity, novelty factor, whatever. These people wouldn't have given them a dime otherwise, so getting a few bucks out of some of them (and becoming the talk of the internet off-and-on for a couple months) seems like a winner to me. The fact that it drags down the price paid per album is only a potential problem if you publish that data and it psychologically affects your real fans, causing them to pay less than they would otherwise. I read this a while ago, apparently it can happen.
 

jagec

Lifer
Apr 30, 2004
24,442
6
81
"That's a large group that can't be ignored and its time to come up with new business models to serve the freeloader market."

That's an...interesting quote.

How do you make money off of freeloaders? Sell them accessories?
 

SludgeFactory

Platinum Member
Sep 14, 2001
2,969
2
81
Originally posted by: jagec
"That's a large group that can't be ignored and its time to come up with new business models to serve the freeloader market."

That's an...interesting quote.

How do you make money off of freeloaders? Sell them accessories?
Ad revenue $$$$
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
i think radiohead made more money with this stunt than they would have with a label
 

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
Originally posted by: SludgeFactory
The idea that "the band only get 47 cents/album" that has become internet lore isn't true for an established act like Radiohead at all. They're at a point in their career where they would be able to negotiate a deal with good royalty rates, probably better than $2.25/album.

But that's not to say that this is a failure. Besides getting a chance to test the waters, they got 2-3 million bucks before the CD release and a huge-ass mailing list out of the deal, not bad. They have a large cult fanbase waiting to buy anything they put on CD. Their situation is pretty unique, they're an ideal band to take this "risk."

The average price was dragged down here by non-fans, attracted by widespread publicity, novelty factor, whatever. These people wouldn't have given them a dime otherwise, so getting a few bucks out of some of them (and becoming the talk of the internet off-and-on for a couple months) seems like a winner to me. The fact that it drags down the price paid per album is only a potential problem if you publish that data and it psychologically affects your real fans, causing them to pay less than they would otherwise. I read this a while ago, apparently it can happen.

Don't forget, they're also pushing a whopping $40 for an actual cd.
 

FeuerFrei

Diamond Member
Mar 30, 2005
9,144
929
126
People who paid contributed an average of $6.00 (£2.89) - but once freeloaders were included, that falls to just $2.26, or £1.09 per album.

From the US, the average contribution was $8.05, but outside the US it was $4.64.
 

yllus

Elite Member & Lifer
Aug 20, 2000
20,577
432
126
I paid $0 and figured if I liked the album I'd buy it again. I didn't like it and deleted the album, so my total stands at $0.
 

jagec

Lifer
Apr 30, 2004
24,442
6
81
Originally posted by: SludgeFactory
Originally posted by: jagec
"That's a large group that can't be ignored and its time to come up with new business models to serve the freeloader market."

That's an...interesting quote.

How do you make money off of freeloaders? Sell them accessories?
Ad revenue $$$$

They'll only pay you money to run ads if some people actually click them, and purchase stuff. When's the last time you clicked an ad?
 

imported_Imp

Diamond Member
Dec 20, 2005
9,148
0
0
I didnt' bother since I don't really like their stuff lately, but I know someone who did and payed nothing. Reason (aside from cheapness): didn't like their past 2 albums, even wanted money back.

If one of the bands I actually liked/loved did this, I'd just pay the standard $10 an album.
 

SludgeFactory

Platinum Member
Sep 14, 2001
2,969
2
81
Originally posted by: jagec
They'll only pay you money to run ads if some people actually click them, and purchase stuff. When's the last time you clicked an ad?
Taking a survey of people at a nerd forum with Adblock-equipped browsers doesn't really count for much, does it? :laugh: The fact is that some people do click on them, otherwise Google stock wouldn't be so highly valued, ridiculously lame spam emails wouldn't exist, etc.

Looking further down the road and considering that free radio and TV existed on ad revenue for several decades, it's inevitable that internet marketing will mature to generate similar revenue (i.e. get a lot more effective, intrusive, embedded, and annoying) as all the content shifts online.
 

SludgeFactory

Platinum Member
Sep 14, 2001
2,969
2
81
Originally posted by: Jawo

Damn.....I didn't know they did that well!
I'm not sure whose numbers are right, but the £4.8 million from that entry is probably not. The author found an open internet poll from mid-October to determine average price paid, and apparently multiplied it by page hits or something.

The £1.3 million quoted by the OP at least originates from a market research firm and is being circulated at major online news outlets.
 

tcsenter

Lifer
Sep 7, 2001
18,934
567
126
Originally posted by: LoKe
CD's are DOWNLOADED. All electronic, all profit, no label, little management, no cuts. Profit.
Right, because producing, mastering, promoting, and distributing music recordings costs nothing. You meant all profit...after all that stuff is recouped?

The only bands who could make this work are well-established bands like Radiohead, who has over 10 million albums sold, millions in the bank, and a loyal fan base, all of which it owes entirely to the 'old' business model. And in the process, Radiohead is sending a big f-ck you to not-yet-known bands who have the misfortune of being born 10 years too late.

Internet promotion and marketing of unknown bands will be every bit as successful as...well...all other types of internet promotion and marketing have been (e.g. internet advertising, content subscription, et. al.). On the internet, any given unknown band is but a proverbial drop in the sea with none of the name recognition, connections, nor finances of a Radiohead to get more exposure than any of the other 250,000 no-name bands out there.

Sure, there will be exceptions who will benefit from some faddish social movement or gimmick du jour, sorta like demand for certain animals as pets will skyrocket after a popular anthropomorphic movie, or demand for politically correct alternatives to diamonds skyrocketed for a few weeks after the movie Blood Diamond. But as a repeatable, consistent, long-term business model, it will be a flop. In fact, it already is.

Long after RIAA is dead (and the recording industry it represents), what will be the motivation for people to [ostensibly] support the 'digital distribution' model? You actually believe the hype of the pirate culture, that they are doing this out of some greater affection for freedom-loving goodness? lmao!

Once their boogey-man is gone, once there is no therapeutic value in it, so too will all the bankrupt 'altruistic' justifications in favor of it, leaving only their true motives - personal gain (theft).

I fully admit the only reasons I ever purchased music as an adolescent or young adult was because I had to in order avoid the non-trivial hassle of analog copying and to obtain the highest quality listening experience available. We didn't give two sh-ts whether the artist was being deprived of income, because it was easy to rationalize that 'nobody is going to be in the poor house just because I didn't buy their album', sorta like the government won't miss my taxes because my contribution is insignificant relative to all the other people paying taxes (relativism).

The second common justification we employed might seem oddly familiar; 'the artist doesn't get any of my money, anyway, it all goes to the greedy record companies' (apparently, the artist was paying for multi-million dollar homes, legendary party lifestyles, and expensive luxury/sports vehicles with Monopoly money).

There is not a single contemporary RIAA-bashing argument or grievance that has not been all the rage for over 30+ years now. The RIAA-bashing crowd at least could try to come up with something original that their grandparents weren't using when they were 16.