Case | HBS Case Collection | May 2008 (Revised September 2009)

Radiohead: Music at Your Own Price (A)

by Anita Elberse and Jason Bergsman

Abstract

In October 2007, the British band Radiohead caused a stir when it announced it would allow customers to decide how much to pay for its new album, released exclusively as a digital download and available only from the band's own website. The pricing plan represented a significant break from the industry standard of fixed prices for music, typically 99 cents for individual songs and upward of $9.99 for complete albums. How viable is such a "name-your-own-pricing" plan? And what does Radiohead's move say about the future of the music industry?

Keywords: Music Entertainment; Price; Marketing Strategy; Distribution; Problems and Challenges; Online Technology; Music Industry;

Citation:

Elberse, Anita, and Jason Bergsman. "Radiohead: Music at Your Own Price (A)." Harvard Business School Case 508-110, May 2008. (Revised September 2009.)