Trent Reznor released some facts about the Saul Williams record he produced and then released digitally for $5 [nin.com]:
Saul's previous record was released in 2004 and has sold 33,897 copies.As of 1/2/08, 154,449 people chose to download Saul's new record. 28,322 of those people chose to pay $5 for it, meaning: 18.3% chose to pay.
Of those paying,
3220 chose 192kbps MP3 19,764 chose 320kbps MP3 5338 chose FLAC
Thoughts:
- 28,322 * $5 = $141,610 which for a solo artist and zero marketing investment seems pretty decent. Of course partnering with a super famous established artist like Trent helps.
- With 154,449 downloads and earnings of $141,610 that works out to earning $0.92 per download which vastly exceeds all bandwidth costs.
- 154,449 seems like an extremely low number of downloads. The hype for this album was primarily in nerd-centric venues so I'm assuming the majority skipped the ecommerce shit and went straight to torrents for their downloads.
- This isn't counting other digital sales avenues -- did they put it on iTunes? That's where most people are buying their digital music these days, not going direct to the artist's website.
- I think putting such a low limit on what people could pay was a dopey idea. If we're going to be dealing in intangible value, why not let consumers decide for themselves?
- Are there really that many FLAC users out there?
All in all I think it was a success even if they feel disheartened. Trent admits that he spent too much on the record. I'd be interested to know what the costs amounted to. I can't even conceive of spending $40,000 on a record let's say and having $100,000 left over would keep me in beer and guitar strings for another year or two.

The Washington Post has a cute article:

I needed to run 6 1/4" outs into the soundboard. The soundboard was unfortunately at the back of the giant room and the sound fellow only had two DI boxes on stage and was running an XLR snake to the back. Luckily I brought along my Behringer UB1204 mixing board (just in case) that I was using for practice. So I wound up doing the sound from the stage, which was an interesting challenge when you're playing guitar. The word is it sounded OK so I guess like... I'm a sound genius.