60% of the people who downloaded the record paid nothing.
http://news.yahoo.com/s/ap/20071106/ap_en_mu/radiohead_download_study
Well, they still made some money on the record and the publicity itself probably gained them both notarity and additional downloads that they would not have gotten... and will gain them publicity for upcoming shows.
But, there is something about 'placing value' on a service, or in this case and 'art form' that is necessary for people to take it seriously. In most consumers minds, why pay for the milk, when you can get the cow for free?
Yeah, people can download the tunes illegally if they want, but that takes a bit more effort than what Radiohead did.
Bottom line is that this may work well for an established band such as Radiohead, but really doesnt do much for the value of their music in the long run. Less established artists would not benefit from this as much....
And, there is the possibility that the current unfortunate perception and the diminished 'value' of music as a disposable art form...which is where this has all headed. discuss.