Online Music’s Price Based on Supply & Demand

Amazon.com announced that it recently will unveil its own online music download store that you can go to and purchase music. Nothing new, right? Well actually it is!

This new site, Amie Street, will allow users to download their music with the interesting catch: the price of the music is based on the traditional model from Amazon.com – based on their popularity. So if a song is not popular, then it could potentially not cost you anything to download, but if it is tremendously popular, then you’ll just have to fork over a max of 98 cents. Yup, that’s still 1 cent LOWER than you’ll get from iTunes.

And before you go all happy, Amazon will only be allowing the download of indie songs, not your pop songs that you hear on mainstream radio…

The Amazon.com model seems to be working really well for the company and it seems to me that a lot of websites are looking towards following this model. What model am I talking about? Well the model about showing things that are related to your other search. In other words, if you look at one thing, then also on that screen, there’s a section that says “you might also be interested in X, Y, or Z…”.

This user personalization can definitely help to drive people to look at other things relating to the subject. So, instead of having people always purchase this specific book on how to pass the GMATs written by Kaplan, there are other links that can drive people to view more books written about the GMATs that may be cheaper or offer alternative strategies. It helps to remove the monopoly of one item, dontcha think?

By Ken Yeung

Ken Yeung is a journalist fascinated with the stories of the tech industry and internet culture. He's currently the Technology Editor at Flipboard, where he observes what's happening in the space while also identifying new topics of interest. In addition, he co-hosts the weekly internet show "The Created Economy," which focuses on what's happening to creators and influencers. Previously, he was a reporter for VentureBeat and The Next Web, covering tech startups, the industry's innovations and funding. Ken also has a newsletter you should also subscribe to called "Filed."