Monday, February 02, 2004

*Another one for the smart and innovative category*

A full stocked digital music retailer started by a pair of psychologists is experimenting with dynamic pricing. At prices for well-known tracks start as low as 5 cents (e.g. Blink 182's "Feeling This") or 30 cents (e.g. Outkast's "Hey Ya"), but increase as more people download the track. The price can also decrease as demand drops. It operates much like the stock market. This is in sharp contrast to the iTunes model where all tracks are priced at 99 cents and the BuyMusic model where labels can set their own prices. The big shift here is that MusicRebellion uses technology to decentralize(democratize) the pricing decision.

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