Re: [ARSCLIST] music distribution + radiohead

["Steven C. Barr(x)" <stevenc@xxxxxxxxxxxxxx>]

see end...
----- Original Message ----- 
From: "Jonathan Wise" <jonathan.wise@xxxxxxxxxxxxxxxx>
> Of interest to those following the trials and tribulations of digital
> music distribution:
> 
> Having just released their new album "In Rainbows" as a
> pay-what-you-want digital download, the critically acclaimed alternative
> rock band Radiohead intend to follow it up in December with a 'discbox'
> that will include a second CD, two vinyl records (yes, vinyl!), and
> lyric booklets. In January they will release the album as a single CD. 
> 
> >From an editorial in the NYT: 
> "...about a third of the first million or so downloads paid
> nothing...but many paid more than $20. The average price was about $8.
> That is, people paid for something they could get for free...[This] is
> potentially comforting news for the recording business. The industry has
> been struggling to find a business plan that will work in an online
> market in which - despite billions invested in anti-piracy measures -
> fans can pretty much get their music for free if they want to."
> 
> Radiohead's approach suggests another way out of the conundrum faced by
> the music industry by providing fans with three options: Pay what you
> want (or nothing) for a digital download (that many would have probably
> got for free anyway), pay a premium price for the CD with bonus material
> and related collector's items, or pay list price for a single CD
> release.
> 
> No question--Radiohead are one of the few bands who, having attained
> enough fame and fortune, can afford to take such risks, but kudos to
> them for taking such an innovative approach to music distribution in
> today's complex digital environment. This approach suggests something
> for everyone rather than continued alienation and perceived hostility
> from a confused and frustrated music industry...
> 
One of the problems is that music buyers have never adjusted to the
change in recording prices that accompanied the introduction of CD's...?!
All of a sudden, a "new album" went from around $5 to around $20...in
one fell swoop!

The reality is that the increase can be justified in terms of inflation;
in 1966, my new Mustang convertible cost me $2900 (the dealer knocked
off the eight bucks...?!)...a new version would probably cost me
*$29,000* (or more...) or a 10x increase...! (there are other figures
I can cite...?!).

BUT...at the same time ('66), a hit album cost me around five bucks...!
Using the same 10x multiplier, a new hit CD should cost me about $50...?!
In fact, c.1910...when usual working-men's wages were about $1/day,
a single-sided Victor Red Seal 78...ONE song...could cost as much
as $7.50 (or just over a week's wages...!) Given that as a pre-inflation
price (and assuming prices have increased a hundredfold, which may
be on the low side...?!)...we arrive at a price of $750/recorded tune...
or $10,000.00/12-song CD...!

Steven C. Barr
(even if we use the 75-cent price per DF disc, the CD is $500.000...?!)