Variable Pricing...what the hell is it?

Warners Music Group are trying a new tactic to erase all memories of a torrid few years financially (just like the other majors) - something known as 'variable pricing'. A deal with Digonex Technologies, a company based in Indiana who have been pushing this idea for some time, will allow the major label to pilot a program for the albums it releases digitally. Details are a bit wishy-washy and it's not really known whether or not major artists on the label will take part. What is being promised though is that consumers will have an affect on the way albums are priced.

One question remains though - what is the true definition of variable pricing in this context? It basically means that the prices of songs/albums could change frequently dependent on consumer behaviours in order for the company to find what is being described as the 'sweet spot'. This includes things like how long the music has been available for, what the demand is for it and so forth. But even whilst typing this out, I keep thinking to myself 'this really isn't going to be that different from the way music is priced at the moment.'

Even though this is a very experimental idea and aspects of it could change, I don't think this could ever work in a mass retail sense. For one, iTunes, 7 Digital, Napster and so forth will not want to change their standard charges for albums, since they have their own principals when it comes to business. That and there's also the age old problem of stopping illegal downloaders, which it won't.

DIGG IT!