“Interpol, Cat Power, The New Pornographers, Devendra Banhart, Belle and Sebastian, and Architecture In Helsinki are just a few of the artists releasing music through Amie Street today. And like everything else released through Amie Street, everything will start out as a free download. But don’t think it’ll stay free for long—the more people that download the songs, the higher the price gets. The popularity-driven pricing structure tops out at 98¢ per song, along the same lines as a song you would buy from iTunes or Amazon MP3.”
I love the idea of a popularity-driven pricing structure. It builds excitement in the process of buying. If you take a risk and get in early, you pay less. If you wait until everyone says buy it, you pay more.
This is another example of the sort of thinking that initially seems like it could never produce revenue but calls on new ways of understanding the economy and customers.