An Interesting Take on Online Music Sales

Aug 12, 2007

Amazon.com recently purchased AmieStreet.com, a digital music store that uses a unique demand based pricing. There has been some speculation as to what Amazon intends to do with this acquisition, but I'm guessing they will use this idea in their upcoming online music store. A demand based pricing system is interesting: all music starts out free of charge and, as the demand for specific tracks increases, so does the price. There certainly must be a price cap (no one would shell out lots of money for a single music track), but I'm not sure what that might be.

I think this could do very well for Amazon. One of the biggest selling points is that all music will be completely DRM free. Only time will tell how well Amazon can do against the existing juggernauts.

2 Comments
kip
8:57 AM on Aug 13, 2007
Finally, those people who only like indie rock bands that no one has heard of will have a valid reason for doing so!
Jonah
9:32 AM on Aug 13, 2007
Hahaha ... I hadn't thought of that!
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