New Businessmodell in in the music industry

As iTWire reports, Radiohead new Album was downloaded 2 mill. times in total. Radiohead offered the Download as „free to pay“ – appr. 40 % of the Downloaders were willing to pay about $US 2,26, which is more than 100% more as the normal refund via majors (about $US 1). I wouldn’t have thought, that ANY one would have paid for the album, because a widely spread opinion is, that on the internet everything is free. I see this example as an example majors should look at carefully – users are willing to pay for quality – there’s money out there, but the revenue streams are changing. Users will pay $US 40 for a high quality broadband connection – but they won’t pay for $US 1,99 per Full Track Music Download. I’m seeing quite interesting business models popping out there, especially represented through intelligent bundles (à la get your iPod for $10 more, but filled up with 100 songs).

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