The Innovation Diaries

With all this discussion about ‘free’ and what it means, we’re looking at a major change in the buying experience in 2008, and one we we’re aiming to dissect at various levels throughout the year. Starting with the smoking gun that many believe started the movement, Radiohead’s “In Rainbows” wasn’t actually about altruism - it was a band looking at the strength of their fan base, looking at the decimation that free downloading had wreaked on their industry and realising that they could counter it by asking their fans to put a value on their music. Witness what Radiohead fans wrote on nme.com about the free album launch:

Chris Rogers: “I paid £10 for it. They deserve it. I’m just glad they’re back making music. It’s hard to put a price on it.”

Andrew, Calgary, Canada: “I’ve pre-ordered the album for £7.50. That’s the standard price of a CD here in Canada. It is because Radiohead made the album available for free that I have decided to pay. They have rejected the branding and commercialism standard in the music industry. Absolutely amazing, this band is.”

Glyn, Birmingham: “I’ve paid £1. There are loads of music fans like me who don’t actually pay for music anymore so perhaps Radiohead will end up making just as much money as they would have if they released it properly.”

Jason, Sydney, Australia: “What price do you put on happiness? For me, £7.99. Now let’s see how many cheapskates try and download it free.”

What does this tell us? It tells us that, with the right strategic thinking behind it, ‘free’ can be more valuable than a simple money-based transaction. That ‘free’ is simply a new way to do business. Google know this. And old media companies are just beginning to find it out.