Radiohead Make $10 Million

2007-10-16 by Squamish | 22 Comments
In spite of Radiohead letting fans pay whatever they like for a CD download of their latest release 'In Rainbows', the Oxford-based band has made quite a mint off the album. While fans only paid about half of what new CDs cost in stores, Radiohead has made nearly $10 million dollars (about £4.8 million) in less than a week.

If what is happening is for real, a revolution in the way audiences receive their music may change the music industry forever. A poll made my Gigwise.com had a total of 3,000 participants saying on average they paid £4 for the album. Multiply that by the 1.2 million copies of the album now on fans' computers, and you get £4.8 million pounds!

Because Radiohead is no longer affiliated with a record label, the vast majority of the 'In Rainbows' profit will go to them, with minimal overheads. Compare this to selling it through an online store (iTunes, Snocap, etc), and they could only see as little as 25% of that profit.

From Ultimate-Guitar.com

Tagged: Radiohead

Comments:Add a Comment 
Squamish
October 16th 2007
84 Comments


Hopefully nobody's added this one yet...

StaticSynth
October 16th 2007
16 Comments


xxxxxx

FukuiSan
October 17th 2007
179 Comments


holy!

204409
Emeritus
October 17th 2007
3998 Comments


But also image being a band that has no live show footprint, no online marketing, unfortunate opening studio costs or low quality studio recordings from home studio, etc. Fixing all of those things in order to see album sales costs money in the first place. If Radiohead didn't have a ton of cash and a ridiculous fanbase already already this wouldn't work.

Dragon_Prince
October 17th 2007
272 Comments


This is just great! It's funny how a band has better marketing plans than a record label. Great.

tinathefatlard
October 17th 2007
2051 Comments


123, DFelon

LifeInABox
October 17th 2007
3709 Comments


Good for them.

riobravo1023
October 17th 2007
274 Comments


Dfelon beat me to it.

Spiritofmosa
October 17th 2007
56 Comments


nice

StaticSynth
October 17th 2007
16 Comments


xxxxxxx

Riziger
October 17th 2007
316 Comments


wow. good on them.

AggravatedYeti
October 17th 2007
7683 Comments


This may not cause a revolution in the entire music industry, but it sure as shit will get some bigger bands (at the level or Radiohead or beyond), to start legitimately rethinking their current situations.

Plus, In Rainbows... is phenomenal, they deserve every benefit they reap.

Go Broncos.

204409
Emeritus
October 17th 2007
3998 Comments


I think it'd be great if all "superstar" artists (Radiohead, Coldplay, Foo Fighters, Tool, JT, etc.) pulled themselves from major labels and used this format. They'd make a ridiculous amount of money by not having to pay royalities or for distribution. Just marketing and maintanance costs. Then that'd enthuse labels to put more energy into maintaining artists that aren't ridiculous fad artists (a band like Thrice or Thursday who recently dropped their major label vs. the newly popular Rihanna). A downside though is that labels have little incentive to make their artists massive superstars unless they have them locked into a multi-album contract. They'd market and sell the artist up until a tipping point and then lay off.

AggravatedYeti
October 17th 2007
7683 Comments


But would that necessarily be a bad thing? Labels being middle men to bigger and better things -- you start out on a label, then if able you move on to independent sales. Music could then determine how well an artist sells, not the labels marketing campaign. Not saying it won't be a flawed system, but it could be preferable to what's going on currently.


Meatplow
October 17th 2007
5523 Comments


Awesome.

McP3000
October 17th 2007
4121 Comments


Although i think it was awesome to have the ability to legally get free music (i paid 8 pounds for it) which is roughly $16.25. I wanted to pay $15 but i just rounded up to be nice.

Anyway, if bands start to do this other than Radiohead, it's going to ruin the already fragile music industry. I applaud Radiohead for trying to come off as not caring about profit, but they also knew this would make them more money if the average person paid what they are supposed to for the album.

I split on rather Radiohead is really greedy, or thought this whole thing would go differently. :/

iarescientists
October 17th 2007
5865 Comments


you're an idiot

P13
October 18th 2007
1327 Comments


We can probaby never get a real number, but people are more trustworthy than the record labels believe. So a majority (like 70% i heard) of people payed at least 5 euros for In Rainbows, I didn't but am going to get the hard copy next year.

Enfilade2113
October 18th 2007
11 Comments


Even if it's not the official number, it shows something I've always expected - allow the people to choose their payment, and it will be reasonable for both ends. I know most chose free, but I find that if you merely would lower CD prices to 5 bucks or so (which would still be way more than double the amount it costs to physically produce one) that their sales would go up. One must hurry though, and act on this possible paradigm shift in the industry!

Thank you Radiohead, for make a great point to people the world over, even if that wasn't your intention.

Willie
Moderator
October 18th 2007
20212 Comments


I bought it despite not being too interested in it. I did it just to support them and show the industry that we're not all theives, even when we could be.

samthebassman
October 18th 2007
2164 Comments


I paid $0...

Pyramidman
October 24th 2007
1340 Comments


Dfel is right, from a pure profit standpoint it could have gone hideously wrong
not every band has the financial backing to be able to afford massive losses



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