Presentation on Radiohead - MIS prjoect

1. Submitted by
Group 6 - Omega

2. Challenges of
Recorded Music Industry
• Consumption was moving towards digital format . 9% to 15% jump
in share of digital music of the entire music sales during 2006 -2007
period
• Piracy is the huge issue. 20 Illegal download for every track sold.
• About 55% of revenue goes to recording company with Artists
getting 15% share

3. Innovations
Radiohead’s In Rainbow Release
• Produced by Radiohead themselves
• Radiohead retained all rights to release
• Music album was available for download exclusively from
Radiohead’s website
• Consumers could set their own price
• Individual tracks cannot be downloaded. Albums have to be bought
entirely
• No restrictions on usage of downloaded album unlike iTunes

4. Pricing Strategy and Profit
Analysis
• Radiohead release of In rainbows will significantly change the
whole business model of the entire music industry
• This kind of pricing strategy gives psychological effect to customers
that they are getting at lower price but with equal quality
• It also results in distributive profit which means that the higher the
customers with varying buying price, the higher the profit margin
• Lower price can attract more customers in turn getting more
revenues and high profit.

5. Thank You !!