In the latest of his Lefsetz Letters” (not yet online) Bob Lefsetz touches on the strategy behind Radiohead’s “pay what you want” album release: How do acts establish a direct connection with their fanbase? How do they entice listeners to join their e-mail list, with authentic e-mail addresses? That’s the number one lesson of Radiohead’s “In Rainbows.” Give away something desirable and you get the right to make contact with your fans thereafter....
As noted by Digital Audio Insider, lots of economists seem to think that what Radiohead is doing is analogous to working for tips; Bob Lefsetz thinks so too. Folks, let me ask you something: When you last went out to dinner, did your waiter or waitress ask for your name, email address, postal address, telephone numbers, and for permission to contact you with information about other services they could provide to you?...
Now that the hubbub about Radiohead’s new release has died down, there are a couple of things worth adding to the analysis from various sources I’ve read, including Hypebot, Bob Lefsetz, Digital Music News, and Contentinople. (I haven’t of course read every commentary on Radiohead, so it’s possible that someone has said these things before me and better than me—I don’t do this for a living, you know.) First, I think people are missing a crucial point about Radiohead’s “name your own price” strategy....