Wednesday, March 5, 2008

Music Industry Spearheading Change in Traditional Pricing Strategies

First Radiohead revolutionalised the pricing model for music sales by offering their then new album to be downloaded in exchange for a donation, and now Nine Inch Nails have evolved the business model even further by making available a new four-part album, Ghosts I-IV, containing 36 instrumental tracks spanning nearly two hours. The music was made available in five configurations at five price levels, ranging from free (for downloads of nine songs) to $300 (for a box set that includes two CDs, a DVD, an optical disc containing a slide show and four vinyl albums).

By the very next morning, the band had posted an announcement asking fans to be patient after the high volume of downloads crashed their website. According to reports, the $300 edition sold out in under two days.