I just put a pre-order on the future of music
This morning I put a pre-order on Radiohead’s upcoming album, In Rainbows, paying £2,45 in total for the download. The free pricing model that Radiohead has chosen was the big news yesterday.
The open pricing model is in many ways the most radical business model to date and Radiohead’s choice might prove to create some big implications for the entertainment industry as a whole.
Radiohead and many other bands have a devoted fan group that are heavily engaged with the music and the band. They play few concerts and always at smaller venues. So the need for more is always at presence for Radiohead fans.
This business model might be a perfect fit in an industry with a high level of customer engagement. Since it propose that it’s something so valuable to you that you would actually pay a more than zero to consume it. Hence the entertainment industry might just be such a fit since it create products and content for fans to engage in and to get involved with.
An open pricing model has worked in earlier experiments for different industries, resulting in similar revenue as more traditional pricing models. However few industries have been under such an attack in recent years as the music industry and probably that’s why a radical move like this might be the optimal solution.
Regarding low engagement products such as milk or any generic product it’s naturally a much less sufficient pricing model. I would be very happy to pay nothing for my phone bill.
Kudos to Radiohead, they got more money from me today than they would have on iTunes and we’ll probably find reasons to get back to this discussion pretty soon.
[tags]Radiohead, business model, open pricing, music, entertainment[/tags]
radiohead, gratis musik, nedladdning, prissättning, affärsmodell
