Top iPad Music Apps (a/o May 23rd):
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This is the part where you burn your Econ 101 textbook. Because in certain situations, fans will actually buy more if the price is higher. In the car business, this has been a lesson for brands like Cadillac, where experiments in lower-priced models destroyed the perception of higher-end quality. Once the prices were lifted again, status-conscious buyers returned.
But this anomaly goes beyond luxury automobiles. In the music space, Stageit founder Evan Lowenstein (formerly of Evan & Jaron) is pursuing the idea that artists should protect and charge for certain online assets, specifically unique, live streaming performances. But in a recent marketing analysis with Harvard Business School, surveyed fans actually showed a greater interest in certain higher-priced performances from their favorite artists - even though the 'product' itself remained unchanged.
Dip into 'live streaming performances,' and all sorts of variations emerge. That includes studio feeds, couch performances with requests, and full-blown concert simulcasts, all of which are getting studied and observed in the real world by Lowenstein. But most show a modest increase in demand even while the price is rising. Here are some of the initial findings, shared with Digital Music News.
So, give away those easily-duplicated MP3s, but don't dare give away those one-time special performances. And, price-point experimentation could produce some unexpected gains. The rest is still getting tested in the real world, though Lowenstein is broadening the petri dish through recent partnerships involving Jimmy Buffett and Rhino.
Comments Closed
Visitor Thursday, June 02, 2011
I wouldn't give away those MP3s just yet. CDs and DVDs are also easily duplicated.
However, the silver lining is governments around the world are starting to clamp down on piracy.
As well, the download album grew 8.6% in dollar sales in 2010. The download single grew 12.1% in dollar sales in 2010
Visitor Thursday, June 02, 2011
You may want to consider that the supply of labor to do live performances is limited while the supply of digital downloads is mostly unlimited.
James Thursday, June 02, 2011
So the art itself is to be given away for free, but a fifteen minute video chat with the artist is valued at a premium. What a sad obsession this culture has with celebrity.
@Sonicbids Thursday, June 02, 2011
Sonicbids
Interesting concept: create one-time special moments for your fans... and then you can charge more for them
Jaybird Friday, June 03, 2011
"Markets are not always rational." Marketing 101: Perceived value is important factor in price setting. Case in point: Ringtones (at least initially).
Versus Friday, June 03, 2011
Why should we give away MP3s or our work? My productions are my work. What if my music is not oriented to live performance, and the recordings are the only form the music takes? I have to give it away and live in a cardboard box on the street? This is just wrong in so many ways.
Versus
nathan Friday, June 03, 2011
It is simply because you have to sell formats and experiences that fans will buy, instead of demanding that they buy stuff they won't. If you don't want to tour, don't, but stop demanding that everyone pay you for a format/experience they don't want to pay for.
@TNIPLawyer Monday, June 06, 2011
Paige Waldrop Mills
Maybe you'd sell more if you raised the price. Seems people WANT to pay more for some types of music.
Mojo Bone Tuesday, June 07, 2011
No need to burn any textbooks; it's well-known that price affects perceived value. However, if you fail to provide premium quality for your premium price, you do your brand more harm than good, regardless of short term gains.And it might also pay to consider the packaging: http://bit.ly/kzK3Li
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