Last week was a sad one for all of us. Our beloved file sharing website, MegaVideo, was shut down. I’d say on average I spend approximately 5 hrs/week on this website catching up on my weekly shows. As a university student, it is extremely rare that I’m able to be in front of my TV at the designated time, and now I’m being penalized for this? OK maybe I’m being too dramatic since this is a piracy issue. I’ll dedicate my next blog to this subject, as it is too sensitive to discuss at the moment.
Unfortunately streaming shows isn’t the only piracy that I take part in (don’t judge). I’ll admit that I download music off of torrents, but there are certain artists that I do support by purchasing their music off of iTunes. I have no problem paying a few bucks for certain artists that I like. Apparently there are others who feel the same way as me.
Back in 2007, Radiohead made headlines once they released a statement saying that they were releasing their latest album, “In Rainbows”, as a pay-what-you-wish (PWYW) pricing strategy. They bypassed the traditional mode of distribution, which is normally through a production company, and offered direct downloads off of their website. Fans could literally pay whatever they wish. Some of you may be thinking that this could be wishful thinking for Radiohead; however, the group made more money with the PWYW strategy than any other album! Think about it. E-commerce allowed them to eliminate production, inventory, and shipping costs right off the bat. Not to mention, there must be a subconscious willingness to pay for something we aren’t actually being forced to pay for.
Loyal fans on average paid $2.26 for the album. So even with the anonymity of purchasing online, people still willingly paid for music they could receive absolutely free. I don’t believe that the PWYW pricing approach can be profitable for everyone. There is a growing trend to capitalize on e-commerce as a way to conduct transactions, and Radiohead is certainly one party who took advantage of this.
Source:http://www.getelastic.com/name-your-own-price/
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