Trent Reznor, lead singer of Nine Inch Nails recently announced the cutting of the cord between himself and his record label. And, to celebrate one of his first actions as a free agent was to offer his new album on a pay-as-you-like download model similar to that provided by Radiohead.

According to his own data:

• 154,449 consumers downloaded the album
• just under 20% paid the requested $5 for the album
• Total royalties = $141,610
• Total royalties kept by Reznor & pals = $141,610

Compare this with hypothetical launch through label

• 50,000 people pay for the album @ $16 per CD
• Royalties = $800,000
• Royalties kept by Reznor and pals = $80,000

From our rather unscientific extrapolation, offering music for free appears to be more profitable.