This independent music site uses demand-driven pricing; where the community dictates the pricing of the tracks. All tracks start out at zero and can rise to 98 cents depending on sales.
The site encourages community members of recommend and find music and gives back 70% of the proceeds to artists after the first $5 in sales.
Amie Street have some smart technology that prevents artificial inflation, but openly encourage musicians to mobilize their fan bases to use the site and buy the tracks.
It's interesting to do this in the music space, given that the majority of listeners are used to paying nothing for their tracks. Adding a new model based around popularity gives advantages to the users who discover and break new music and allows musicians to reap the benefits of popularity.
This is a model for the music space, but it would be hard to imagine having demand-driven pricing work for video content, charging users to see the most viewed videos on You Tube, would be impossible.
However, content creators who reach a certain level are starting to charge for their content, in addition to ad revenue, but there are very few people, like Ricky Gervais, who can pull this off.
Is there another demand-driven pricing system that could work for the thousands of content creators who have yet, to reach the giddy heights?
How much would you pay to watch the next Eeepy Bird video?
It appears you don't have Flash installed.
Another example of this model can be seen in the computer game Counterstrike which is a gamer-mod of the popular game Half-Life by Valve Software. Just another place to watch this in action. <br>http://steampowered.com/stats/csmarket/algorithm.html <br>http://steampowered.com/stats/csmarket/
Posted by ross on 10/27/2006 05:15 PM