Radiohead's plan to allow fans to set their own pricing for the In Rainbows album last year was the perfect fit for Radiohead in late 2007, according to the band's manager, not necessarily the one-size-fits-all solution to the music industry's woes that some initially claimed it was.
But for some bands, the model will surely make sense, for all of their music or only certain releases (example: "It's our drummer's birthday – how much will you pay for this incredible drum solo he recorded this morning?").
INDISTR, which allows bands to sell MP3s and digital albums while keeping 75 percent of revenue (paid out in real time via PayPal), have a new Radiohead-like "pay what you want" option that lets bands let fans set prices, anywhere from $1 to $20. The price can apply to either a single MP3 or a bundled album.
(Kevin Hockin, who handles operations and marketing for the company, points out that RIAA member labels are trying to reduce the artist's cut of a digital sale from 13 percent to 9 percent, and that Apple is trying to lower the payout to artists from songs sold on iTunes down to 4 percent.)
