James Bates a director in the Media and Entertainment division at Deloitte said “There are two possible motives that would explain the move by Radiohead to let their fans pay as much or as little as they like for their latest album. While they have enough money and popularity it could be argued that they care deeply about the creative process and this move maybe genuinely altruistic in support of their fan base. Or perhaps they expect this model will drive revenues through the sale of ancillary goods and ultimately there would be no loss in overall revenues. Whichever it is, it would appear that for Radiohead the record company model does not have enough to offer them at this point.

“Up to now record companies have focussed their business saving efforts on consumers and piracy. Radiohead are clearly trying to build an independent business model that suits their needs. Unless record company giants wake up and find a model that delivers real value to artists technology will continue to be used to by-pass the record companies and in comparison piracy will seem a relatively small problem.

“While Radiohead may be one of just a few bands that is in a position to take such a bold step their actions have significant implications for the industry. Whilst as a true fan one would like to think this a truly altruistic move, let’s not forget most serious music collectors will pay £40 for the box set and fans don’t come much more dedicated than Radiohead's.”

Ends

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press. 

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.