1. Sample Radiohead: Music at Your Own Price
Team Name
School
Date

2. Sample Title Slide Subtitle of facts “the take away”
5-7 word summary of slide that you want audience to remember

3. Sample Title Slide Subtitle of Pros Subtitle of Cons “the take away”
5-7 word summary of slide that you want audience to remember

4. Sample Title Slide Text “the take away”
5-7 word summary of slide that you want audience to remember

5. Radiohead: Music at Your Own Price
Team Name
McCallum High School: Austin, Texas
Date

6. Yorke said. “… Boom! It was up on You Tube. I think it’s fantastic.”
Radiohead Background
British alternative rock band
Founded in 1985, by Thom Yorke and 4 friends
1st US hit, was Pablo Honey in 1993
Sold 2 million copies in US by 1995.
EMI published 5 more Radiohead albums by 2003 selling 8 million copies in US alone.
Band attracted huge, loyal following.
In 2006, 7th album, In Rainbows, to be published online by Radiohead
to find other ways to attract more followers
“we earned the privilege to do things our way”
Song from concert posted on You Tube by fan.
Yorke said. “… Boom! It was up on You Tube. I think it’s fantastic.”

7. The Music Industry in 2007 $29 Billion,  9% drop from 2006
CD sales  13% that is 2.46 $B
Digital sales  34% that is 726 $M
2007: CD sales 82% of global market
Record stores 30%
Discount stores 37%
Amazon 7%
iTunes 10%
Total digital sales 15%

8. Music Industry Pricing in 2007
Retail $14.99
Label share $9.50
Retail share $3.00
Artist share $2.25
Itunes $9.99
Itunes share $3.00
Label share $5.60
Artist share $1.40
Piracy 20:1
20 illegal copies for every track sold for
$12.5 B in lost sales
Fighting Piracy
Greatest threat to industry - damage or loss of income is Billions of dollars.
Value of product is greater if accessible to wider users base.
Labels began by prosecution and penalties.
Second step was so-called DRM (Digital Rights Management) protection of music files.
Some offered music online for free with sale-related products and concert tickets.
Some will charged subscription (Rhapsody).
Some charged for every song downloaded to personal computer.
The future of the Music Industry is to partner with Internet technologies, not fight them.
Talents must find a new way how to sell.

9. Radiohead’s new Business Model
Radiohead’s Album – In Rainbows – ‘Sold’ direct-to-consumer
Business Model: NAME YOUR OWN PRICE
Let customers choose what price to pay for album.
62% paid zero
17% paid between 1¢ and $4
22% paid between $4 and $20
New Music Business Distribution Model?
62 percent of the people downloaded for free…
38 percent of buyers paid an average of $6 for the music
If Free is same as “Pirated copies,” then only 1.5 copies pirated instead of 20.
Radiohead made roughly $7.2 million from digital sales of In Rainbows (estimated 1.2 million units sold).
Avg. $ per copy
Radiohead
via Label
via iTUNES
Radiohead share
$6.00
$2.25
$1.40
When this album came out, Radiohead was not on iTunes. They sold another 1.75 million when it was officially released.

10. Results Conclusion 1.2M sold direct @ $6.00 ea.
Plus $1.7M sold via iTunes @ $1.40 ea.
Radiohead earned $9.6 M on In Rainbows
But the increased market earned them $2.4M more than alone
and twice what they would have earned through a label
Conclusion
Talents must find a new way how to sell.