Comments on: How much are people really paying for Radiohead?

It turns out that the band's fans aren't as generous as they claim.

[pscoop]

Is it all about the cost?

First, Luis Villa did a more general analysis (in the sense that he used industry average figures in the absence of specific knowledge of Radioheads contracts) - http://tieguy.org/blog/2007/10/02/three-things-you-should-know-before-deciding-what-to-pay-for-the-new-radiohead-album/ although his site seems down atm. His figures suggest $2.30 as the floor price for what Radiohead would expect from a CD sale, so it would seem that they are doing at least as well as they did before. Also it will be interesting to know how the sales go over time and the total volume (it's ok if you make less per sale if you have more sales, right?).

But, just like open source, I don't think this is just about price - now the band and fans have a direct relationship, there is now a quicker more direct route from recording to distribution, instantaneous geographic sales figures, etc.

[Lacquedem]

Volume may compensate for profit

Even if the numbers are right (2.50 v. 3.00), we need an analysis of how the sales numbers have gone. Far more people will buy an album at $5 than at $20, so they may be making up the $1 with increased volume. I'd be amazed if that weren't true, though a market analysis like that has to be done by an expert, and IANAE.

[Lacquedem]

Sales v. profit

Surely there are far more consumers in the market for a $5 album than a $20 album, so one would think they could compensate for decreased profit per unit with an increase in volume, right? Anyone have market numbers for Radioheads sales adjusted to current trends? I certainly don't.