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.
What is dynamic pricing
Dynamic pricing means that the price of any song changes as demand for it changes. Consumers set the price within the boundaries set by artists. Each song can have its own dynamic pricing algorithm, which decides when the price goes up or down. That means that the cost of a song, movie, etc., can change from second to second. Pricing for all items can change every minute, depending on the demand variation at that particular time. At the end of that minute, the price may have changed, and the system will give you a new price. In other words, our prices for Independent tracks change based on what our users want. When lots of people want to download a song, the price for it rises. When people aren’t so interested in a file, the price goes down. We plan to dynamically price our entire catalog of music in the future.
Why use dynamic pricing?
Because we simply feel it’s the best way. Our customers reward popular artists by paying more money for that artist’s work, encouraging the creation of new music. There are always other artists who may not be experiencing the same popularity and their work will seem like a bargain. That encourages people to buy their work and so on. Besides that, it gives you the most freedom. You encourage only the art you want, and get the most from your entertainment dollar. You never pay for what you don’t want; you never pay for what you don’t use. You pay just the right amount, and that’s dynamic pricing.
How do I purchase Music?
Once you find the file you would like to purchase, click on the “Buy It!” link on the album details page.
What file formats does MusicRebellion use?
We sell nearly all of our Independent artist’s music in MP3 file format. Our major label selections are in Windows Media (WMA) format.
What Media Players can I use to play my MP3 and WMA files?
MP3 files can be played back on most audio players including Winamp, Music Match Jukebox, Real One player, and Windows Media Player to name a few. WMA files are recommended for playback with Windows media Player, as other audio players may have problems playing the WMA files.
What are the limitations on the music files I download?
99% of the music files are able to be burned to a CD and transportable to a portable MP3 player. WMA files are burnable at least 10 times, but the exact amount will not be displayed until the song has been purchased. There are no restrictions on the amount of times you can transfer a song to a portable device. There are no limitations on the MP3 files.
How does an artist or record label place music on the MusicRebellion website?
Go to our artists’ page and follow the instructions on how to register as an artist/label. Major record companies who have multiple artists and products they wish to make available through MusicRebellion should contact MusicRebellion directly to arrange for a mutually satisfactory agreement.
How does an artist or record label contact MusicRebellion?
MusicRebellion has its headquarters Indianapolis, Indiana, and a branch office in Seattle, Washington. Artists, record labels and other interested parties can contact MusicRebellion on the web, by email, or by phone: (317) 638-4173, or by mail:
1 N. Meridian St.
Indianapolis, Indiana 46204
How can I change my user preferences?
If you click on preferences, located at the top of the MusicRebellion homepage you will be given several options.
First, you can choose which page comes up when you log into MusicRebellion. Go to the drop down box beside “Homepage” and hoose from 3 choices:
Main Page – Our home page
Your Account – This is where you can look at your profile, including address and other contact information, change your preferences, look at your purchase history, funds into your account, and manage any labels or artists you may have listed with MusicRebellion.
The Label/Artist Manager – This enables you to upload your original work or your artists’ original work and manage your artist’s or label’s information.
Second, you can choose to receive the MusicRebellion newsletter. You need to simply click on “yes, send me the newsletter”, or “no, do not send me the newsletter”.
Third, you can choose your MP3 download filename format with the drop down box beside “MP3 Download filename format”. This will determine the format in which your file name will appear when you download it.
Fourth, you can choose your payment option. Purchases may be subtracted from your MusicRebellion account balance or charged to your PepperCoin account.
When you are finished customizing your preferences, click save, which is located below near the bottom of the user preferences page. At this time, your preferences will be saved. You can change your preferences at any time following these steps.
How does MusicRebellion bill users?
At MusicRebellion, billing is completed as transparently as possible for the user. A user has three different ways to make a payment.
The user may:
Deposit money directly into his/her MusicRebellion account using a PayPal account.
Deposit money directly into his/her MusicRebellion account using a credit card. Open a Peppercoin account – Peppercoin, Inc allows you to open an account using a credit card and then each purchase is billed to your credit card.
Do I have to put money into my account before I download?
If your preferred payment option is MusicRebellion, we require you to deposit money into your MusicRebellion account before purchasing. We are dedicated to bringing you music at the lowest possible cost. Every credit card transaction costs us money. If you had to complete a credit card transaction every time you wanted to download a file, that cost would be added to the cost of every file, every time. By doing one transaction for many downloads, we lower our cost and in turn, your files are cheaper. You can close your account and have your money refunded at any time by contacting our customer service department
If you open a Peppercoin account, you will not have to deposit money into your MusicRebellion account before you make purchases. Peppercoin, via the PepperPanel, will charge your credit card as you download.
What is Peppercoin?
Peppercoin is a new payment system that allows you to buy digital content on a pay-per-use basis. For more information, you may read the next few questions, or go here.
Which operating systems can I use with Peppercoin?
The following Windows operating systems are compatible with the Peppercoin payment system: Win95, 98, 98SE, ME, NT, 2000, XP.
Can I run the PepperPanel on more than one machine?
Yes. You can install the PepperPanel on as many Windows machines as you like. You can even use someone else’s PepperPanel to buy digital content. All you have to do is log into the PepperPanel with your account username and password. Your purchases will be billed to your account.
What does PPB stand for?
This is an abbreviation for the PepperBox file format, which is the format expected by the PepperPanel. These files contain an encrypted file or application as well as information such as the price, whom to pay, and a description of the content.
Do I have to install software on my computer? Why?
If you use Peppercoin, yes you must install the Peppercoin PepperPanel on your computer. While you can open a Peppercoin account without installing the PepperPanel, your account will be useless until you download and install the PepperPanel. The PepperPanel lets you pay for and access the digital content that you download from the Web. If you choose to use MusicRebellion to pay you do not have to install any additional software.
Does MusicRebellion store my credit card number?
We do not store your credit card number itself. We store part of your credit card number in order to process refunds, but we cannot charge anything further to your credit card. Even someone with access to our database cannot get your credit card number.
What if my download is broken or my modem disconnected?
You are authorized to download your media one time. That way, if your modem gets disconnected, you can try again within two days. If you complete a download, you are not allowed to download that file again until you pay for it again. To prevent dishonest use, if the download breaks multiple times just before the end of the file, you won’t be able to download that file until you pay for it again.
I would like the money from my account refunded.
If you funded your account with a credit card, please go here to request a refund. If you funded your account using paypal, please contact customer service for a refund.
How to view your purchase history
To view your purchase history begin by clinking on the “my account” link at the top of the web page. Once you have opened the “my account” web page you will be able to access your purchase history by clinking on the “purchases” link at the top of the page.
How to burn your Music to CD
Our Recommended method for burning WMA’s and MP3 files to CD is by using Windows Media Player. Some CD burning applications will not work with WMA files. Using Windows Media Player will work the best as both the media player and song files are Microsoft products. If you have any problems burning CD’s with Windows Media Player you can consult the Windows Media Help page by clicking on the Help link at the top of the Windows Media Player. Once you have opened the help page click on the link “using the player”. Next click on the link “using CD’s”, then click on the link for “creating your own CD’s”. This should provide you with the proper assistance in burning your CD.
Will books, movies and hardware be sold on MusicRebellion using the same pricing method?
Right now, music is our primary content. In the future, as compression techniques continue to improve and broadband access penetrates more deeply into American households, digital videos and software will also be offered for download. The same dynamic pricing model will be used and a subscription system may be established to compliment our dynamic pricing system.
What does “Explicit Content-Parental Advisory” mean?
This is a notice to the consumer that the identified recording(s) may contain strong language or depictions of violence, sex or substance abuse. Please read the parental advisory guidelines at http://www.parentalguide.org for more information. The RIAA also posts information on parental advisory standards.