If Teaser Rates Work for Buying Houses, Why Not for Online Music?
Now from a reader named Nils Thingvall comes word of a newish indie site called Amie Street (here’s some background) with a pricing twist that might remind some people of adjustable-rate mortgages. From the site’s FAQ:
How is music on Amie Street priced?
Songs on Amie Street start at 0 cents and rise in price the more they are purchased, up to 98 cents. Amie Street uses this pricing method to encourage music lovers to discover and buy new songs.
As a listener, you know that when a song is priced at 98 cents it’s because that song is very popular among our members and is probably worth the 98 cents. At the same time, we keep music affordable so you won’t have to break the bank discovering new music. If you find it first on Amie Street, you get it free!
It’s possible that 98 cents is cheap enough to incentivize people to shop as Amie Street hopes. It’s also very possible that free riders will swamp the site, scoop up as much as they can eat for free, and move on to the next free buffet.
I would love to hear how things turn out for Amie Street.