Variable Pricing Awaits Online Classical Connoisseurs

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Since the advent of digital music sales, arguments have raged over pricing.

Apple prefers 99-cent downloads, labels favor variable pricing tiers, and others want something much, much cheaper.

A softer voice comes from Indianapolis-based Digonex Technologies, which has been pushing user-driven, dynamic pricing for years.  That probably sounds scary to established content owners – especially given the broad availability of free music online – though Digonex has been slowly striking deals.

The latest involves classical label Naxos, which is planning to thread Digonex into a limited experiment next month.  Digonex will dynamically generate download pricing on roughly 100 titles, using real-time, consumer demand data.  The concept will involve MP3s, according to the companies, a move that improves the value of the offered music.  “The pilot program with Naxos and Digonex will help us continue our commitment to further developing our customer-driven business model,” said Justyn Baker, executive director of Licensing for Naxos.