After four days, he has sold 110,000 copies at $5 each
After deducting production, Web site and transaction costs, he has a profit of around $200,000 (so far). He says that is less than he would have made had a large record company produced the video, but the public is getting more this way:
- They are paying $5, not $20 for a CD.
- They can make all the copies they want to.
- They can watch it on any device they have access to.
- It is not restricted internationally.
- The record company does not have their personal information for marketing purposes.
<aside to Louis>
Louis, don't forget that this is only the first four days of sales. You have also gotten a ton of favorable publicity -- I must admit that I had never even heard of you before this and now I am going to buy the video. You also learned a lot about producing concert videos and Internet marketing, so you will have better margins on the next one.
</aside to Louis>
This is a cool example of Internet going around the (fat) middle man. Even if you don't buy the video, you should read Louis CK's insightful, humorous summary of the deal.