comScore released some data yesterday about the new Radiohead album that was only distributed through their web site and the price was not set and they did not enforce any pricing at all so people could download the album completley for free if they wanted and didn’t have the money or feel the responsibility to pay.
What they told us is some very interesting information about the music business and the music consumer market. With over 60% not paying anything at all and an average cost paid of $6.00 from just those who did pay (40%), it tells us a few things about the real value of music to consumers. When you average that out over all people it makes the average cost spent by someone $2.26 per album download. (which is higher than my guess of $0.99 cents)
Most people don’t think it is worth a 15 dollar CD or a 10 dollar iTunes download. They think its worth $0. No money at all, it should be free. Is this because they think it’s cheap, easy to create and plentiful? Or is it because radio has been free forever? Or because the Internet made downloading it for free accessible in a way they could copy it and share it? Personally I think it is because of 2 reasons:
1. The average age for the interest in music and online music is very young, these kids don’t have the money (and may not see the value) for paying for entertainment yet. Older folks would think differently on average.
2. Radio has set the standard for eons being free. Why can I listen for free all the time there, and not online or on my ipod? Free is free, and the ad supported radio model is still telling us that music isn’t worth paying for.
Here is the data from comScore:
Radiohead “In Rainbows” Online Album Downloads
October 1-29, 2007
Total Worldwide – Home/Work Locations
Source: comScore, Inc.
Worldwide U.S. Non-U.S.
Percent Who Paid for Download 38% 40% 36%
Percent Who Downloaded for Free 62% 60% 64%
Total Downloaders 100% 100% 100%
Radiohead “In Rainbows” Online Album Downloads
October 1-29, 2007
Total Worldwide – Home/Work Locations
Source: comScore, Inc.
Worldwide U.S. Non-U.S.
Average Dollars Spent
per Paid Download $6.00 $8.05 $4.64
Average Dollars Spent
per All Downloads $2.26 $3.23 $1.68
