I have neglected to mention I had a great time speaking with Vince Outlaw on his New Jazz thing show last night on KSDS, San Diego last night. Our main topic was the status of music available over the Internet and my prediction that 2004 will be the year it breaks through to the mainstream. Thanks Vince!
One of the biggest issues regarding the digital delivery of music is pricing: like Sean Ryan of RealNetworks said, if the new iPod can hold 10,000 songs, no one is going to spend $10,000 at $.99 per song to fill that sucker up.
- Online music retailer, MusicRebellion.com announced today the company would begin pricing popular music at 10 cents a song. From the 10 cent floor price each download will be priced dynamically with MusicRebellion.com's exclusive pricing system provided by its parent company, Digonex Technologies, Inc.
Digonex Technologies has created the consumer demand driven pricing system that will be used to sell music files through MusicRebellion.com. This pricing structure is customized for the online marketplace so that the price of each song will raise and lower as market conditions change. As the price of each song fluctuates, the technology will search for the market's "sweet spot".
"Our behaviorally based download model is predicated on the belief that the public will purchase music legally when given a fair price, a quality product, and an easy to use system," said Jeremy Eglen, VP of Licensing and Operations of Digonex Technologies, Inc. "The platform that we are demonstrating today gives consumers the opportunity to participate in setting fair prices while also knowing that all artists and stakeholders are receiving their just royalties."
The special prices will only be offered for a limited time.
MusicRebellion is an online media retailer that offers both independent and major label artists. The music offered is available on a pay-per-download model with over 99% being burnable and transportable.
Digonex Technologies focuses on the security of digital content and development of automated and optimized pricing platforms for e-commerce. Digonex's software uses its own proprietary algorithm, based on patented technology, to continuously identify the "sweet spot" where prices follow perceived market value and generate the maximal economic return.
Very interesting. Here are their FAQ:
- How much does the music cost?
The prices of the music on our site change. The price of a track may be a nickel or a few dollars depending on the demand for that track. We call that "dynamic pricing," and it's explained below. To find out what the current price of a track or an album is, look under the "Price" column on the album details page. From the main page, you can click on "Get It" to find out a song's price. We have no subscription fees or other hidden costs.
During our current promotion, our major label music prices start at $.10 per song.