in_rainbows

Since I have such an interest in novel ways of marketing CDs, I had to make a brief comment about Radiohead’s new album, “In Rainbows.” First, I should say that I have no loyalty or interest in Radiohead for the most part, but that may change now. Radiohead announced yesterday that their new album will be available for download on October 10th, and a special CD box set will be available later in the year. What makes this insanely unique is that Radiohead is letting YOU CHOOSE THE PRICE! This is phenomenal! I am so impressed with their self-confidence and trust in fans, that I will undoubtedly purchase these MP3s. I haven’t decided what I will pay, but it will probably be in the 5 to 7 dollar range; since I believe that purely digital music should be about half the price of a physical CD.
I’ve seen this technique work first hand during my undergrad entrepreneurship class. For one class, we were sent out on the streets of State College with $40 per group and were asked to make as much money as possible in an hour… any way possible. Our group decided to buy roses to sell for $2 or $3 each. After some time of being frustrated and shot down, we decided to approach people with the roses and just ask for a donation. The response was much better and on average we probably received about $3 per rose… with some people giving only a buck and others $5. The latter method was less aggressive and people were more willing to participate. This is essentially the same idea that Radiohead is doing and I am very interested and excited to see how it turns out for them.