ComScore. “Press Release: For Radiohead Fans, Does “Free” + “Download” = “Freeload”?” 5 November 2007.
This press release details a study of the online sales of Radiohead's "In Rainbows," an album the band released via a pay-what-you-want download model. The statistics obtained demonstrate clearly the presence of a "freeloader market," in which 60-62% of people will download an album for free when confronted with a pay-what-you-want option. The article offers a few different perspectives. Some experts are impressed that 40% of consumers are willing to pay "real money" for something they could get for free. Others question whether this model could be viable for less-established artists. Edward Hunter, a comScore analyst, states that this unique effort is important in that it eliminated a loss of profits due to illegal downloading.
Though these statistics are important, they are more interesting when confronted with data from (countless) other sources, which report that Radiohead's experiment was a likely success. Many different sources report that the profits made by Radiohead on In Rainbows were comparable to what they would have made under normal record-company distribution. Though those opinions and statistics can be found readily, the data regarding freeloaders is more unique to this article, which seems to expose the downside of pay-what-you-want models.
tagged digital internet internet_marketing music pay_what_you_want radiohead by sarahlb ...on 09-APR-09
Barboza, David. "Google and Music Labels bet on Downloads in China." The New York Times. 5 April 2009.
This article addresses one of the most recent experiments in new profit models based on digital music: Google's free music search engine in China. Very recently, several of the biggest international record labels partnered with Google and a Chinese company (top100.com) to offer a free music-download service. Because online piracy of music is particularly rampant in China, the success of this model could have lasting implications on policies in the US. The New York Times article offers both critical and supportive opinions on the initiative. Notably, Google will have to struggle to contain the music-downloading to China, employing "legal and technical hurdles."
The partnership of Google with major international music labels represents a new way for record companies to remain profitable without trying to stop free music downloads. This unlimited-download service is supported not through subscription, but by advertisements. Although it is difficult to anticipate the success of such a model, the adoption of this idea certainly reflects a major change in the way that the entertainment industry is approaching its consumers. The willingness of labels (even on this controlled scale) to abandon control over music distribution to this degree is a symptom of their desperation, certainly. However, it is likely also a necessary move towards a new kind of support for music development.


