Warner Music Group Attempts Variable Pricing To Help Sales
Digonex Technologies, Inc., announced today an agreement with Warner Music Group (NYSE: WMG) whereby Digonex will use its proprietary technology to recommend varying wholesale prices to WMG for select digital album downloads. The test is expected to begin this month and will be for a limited amount of time. The specific titles and participating retailers are not being announced at this time.
Good idea to help slumping CD sales, some places still sell CDs for over 15 dollars, that is crazy.
The rest of press release is below.
Using Digonex’s patented DigitalOnlineExchange™ (DOE), a dynamic commerce engine that suggests changes to prices based upon behavioral principles, consumers can actively help set prices for select digital albums from WMG’s artists as part of this program. DOE will work with digital retailers to continuously identify the ‘sweet spot’ where prices follow perceived market value and generate the maximum economic return while providing fair prices for consumers.
“We are fortunate to be working with visionaries at Warner Music Group on this groundbreaking pilot program.” said Jan Eglen, CEO of Digonex Technologies, “We’re confident that our technology has the potential to have a significant impact on digital album sales for the selected titles.”
“Digonex’s technology provides us a unique window into one of the key variables that impacts consumer behavior and by employing tools such as these we can continue to refine and improve our digital offerings,” said Larry Mattera, Senior Vice President, Digital Sales & Marketing, WEA Corp, WMG’s U.S. sales and marketing company.
6 Comments so far
this isnt going to increase sales….
there dumber than i thought if they honestly believe that.
Buying a song for .99 cents isnt going to cut it. Neither will $15.00 for a CD. adding prizes within the CD package is an incentive, that could be promising for companies. Give people a reason to buy, obviously everyone following the T-pain format isnt going to help let alone downloading off of rapidshare/Zshare/megaupload.
if they make cd’s 5 dollars and they beat plies with a bat, I’ll think about it
Im still going to use limewire I need my money for gas
the only way sales can go back to the way they used to be is to ban MP3’s.
cosign number 3 gas is a muthafucka right now i’m bout to get a metro card.
and i aint buying no cds they already closed most of the music shops in bk. they closed beat street and music factory. bring beat street back i’ll cop a cd or two. they had everything, early
the real reason people are not buying CD’s is due to the lack of disposable income,