So if they only made about 2/3 of their usual nut per unit on this record, but increased their units shifted by 50%, then they came out at least "even", right?
You have to figure the "cost of production" is pretty low compared to actually printing CD's and all that. I bet they didn't have to spend much to promote it either, it was brilliantly conceived to be "viral" -- "everybody's talking about the 'free' Radiohead album".
Though I suppose the latter factor only works when it's a novelty, and can't be sustained.
And you're right, there's a lot to be said for building a fan/customer list and managing it well. The download could be a loss leader for selling more profitable T-shirts and concert tickets (or even buying the actual CD after testing it out -- 160kbps is pretty crummy! More like a sampler version than the real thing.)
I assume at some point the band will give their own assessment (maybe the real sign will be what they do with their next one!)
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