UPDATE - We have our first financial updates about Radiohead's Digital Honesty Box, a concept where fans 'pay what they want' for the band's latest album (In Ranbows).
Apparantley, the band has collected roughly $9.6 million for 1.2 million albums so far. That's roughly $8 per album, much higher than many critics had anticipated. In fact, there's also an anecdote that one LimeWire employee tried to pay $500, but the Digital Box site maxes out at £99.99 (roughly $200).
Could this conecpt take off? Potentially, although part of why this works is that the album is actually good and the novelty factor probably boosted overall pricing.
'Pay What You Want' Pays Off (UPDATE)
Radiohead Nets 9.6 MM
Trend Themes
1. Digital Honesty Box - There is an opportunity for disruptive innovation in creating digital platforms that allow customers to pay what they want for products or services.
2. Pay What You Want - The 'Pay What You Want' concept presents an opportunity for disruptive innovation in pricing strategies across industries.
3. Novelty Factor Pricing - There is potential for disruptive innovation in using novelty factors to boost pricing and increase revenue.
Industry Implications
1. Music Industry - The music industry can explore disruptive innovation opportunities by adopting the 'Pay What You Want' pricing strategy for digital albums or merchandise.
2. Publishing Industry - The publishing industry can create disruptive innovation opportunities by implementing the 'Pay What You Want' model for digital book sales or subscriptions.
3. Digital Services Industry - The digital services industry can capitalize on the concept of novelty factor pricing to increase revenues and give customers more flexibility in pricing options.