[A2k] what fans paid for radiohead's album
Rishab Aiyer Ghosh
rishab@dxm.org
Wed Nov 14 04:38:00 2007
http://www.economist.com/daily/chartgallery/displaystory.cfm?story_id=10125466
the economist doesn't do the maths too well. they complain that only 4%
paid >$12 (12% paid $8-$12). but let's assume that radiohead would have
had exactly as many CDs _sold_ at $20 as they had downloads (a very
optimistic assumption). in that case, just with 12% paying about $10,
they've earned at least as much as they'd have earned if everyone had
paid $20 each, and they got 6% royalties on the retail price. i don't
think many bands get 6% on retail, not even radiohead...
since almost certainly number of downloaders is higher than the number
that would buy a CD, in reality they may well have earned much more this
way than through CD sales.
i'm assuming in turn, of course, that radiohead gets to keep almost 100%
of the voluntary payments made for the downloads.