Nettwerk Music, PassAlong Networks and Digonex Technologies Partner to Launch Music Industry's First Variable-Pricing Model Pilot for MP3 Music Downloads
PassAlong Offers Buyer-Driven Pricing for Albums and Singles
FRANKLIN, TN -- (MARKET WIRE) -- 10/17/07 -- PassAlong Networks(TM), Nettwerk Music and
Digonex® Technologies today announced the launch of a joint
variable-priced MP3 pilot, the music industry's first offering of fully
variably priced downloadable music. Using patented Digonex pricing
technology, PassAlong is able to adjust retail pricing on a weekly basis
for Nettwerk Music's MP3 catalog.
Album prices are adjusted up or down according to the consumer
demand-driven Digonex pricing engine, which systematically changes pricing
based on Internet economics and consumer behavioral principles. Most album
prices fluctuate between $3.30 and $9.99. Singles are dynamically priced at
one of three possible price tiers: $.33, $.66 or $.99.
"We are thrilled to partner with Nettwerk and Digonex to launch this
pricing pilot, a true industry first for music downloads," said Dave
Jaworski, co-founder and CEO of PassAlong Networks. "We are extremely
optimistic about this test and we think that it will show how dynamic
pricing can benefit the marketplace."
Consumer demand helps determine the pricing for approximately 150 fully
variably priced albums and the appropriate price tier for more than 1,500
singles. Prices will be updated at noon CDT every Wednesday throughout the
test. The variably priced albums and tier-priced singles are offered
through PassAlong's digital media services engine, StoreBlocks(TM), which
currently powers more than 130 music download stores including JAZZIZ
Magazine and TransWorld's f.y.e. -- for your entertainment online music
store.
"Nettwerk is extremely interested in how varying pricing in the marketplace
affects consumption," said Brent Muhle, who leads digital initiatives for
Nettwerk. "Digonex and PassAlong have a created a mechanism that allows our
artists to define the market with their fans rather than passively
participating with retailers."
Nettwerk Music's MP3 catalog is made up of dozens of artists including
Sarah McLachlan, Barenaked Ladies, Leigh Nash and The Weepies.
"Nettwerk and PassAlong are to be commended for their pioneering spirit in
adapting Digonex's Dynamic Pricing system for this pilot," said Jan Eglen,
CEO of Digonex Technologies, Inc. "This launch represents the first deeply
rooted technological and business effort to address the two major banes to
the music marketplace -- fair pricing and wide interoperability."
The pricing pilot runs through late 2007 and can be accessed at
http://MP3.storeblocks.com. Throughout the pilot consumer responses and
pricing results will be reviewed and adjustments made accordingly.
About Digonex Technologies, Inc.
Software developer Digonex Technologies focuses primarily on development of
automated and optimized pricing platforms for e-commerce, allowing client
companies to increase customer retention and maximize revenue. For more
information, visit Digonex Technologies' website at www.digonex.com.
About Nettwerk Music Group
Nettwerk Music Group is Canada's leading privately owned record label and
artist management company, responsible for managing some of North America's
biggest artists such as Sarah McLachlan, Avril Lavigne and many others.
Nettwerk has several offices located around the world including New York,
Los Angeles, Boston, Nashville and London. Its home office is in Vancouver,
B.C.
About PassAlong Networks(TM)
PassAlong Networks develops digital media innovations and services designed
to enhance the Connected
Consumer(TM) ecosystem while empowering artists and fans. PassAlong's
core technologies include: media libraries, digital media store-building
platforms and Web services through the StoreBlocks(TM) division;
consumer-direct media displays, widgets and notification services through
the OnTour® division; non-DRM protection technologies and media tracking
through the FreedomMP3(TM) division; and independent artist self-publishing
and promotion through its subsidiary Speakerheart.com. Key partners
include Gracenote, Cinema Now and Digonex. Current initiatives include
advertising premium incentive programs, ad-supported revenue models,
variable-pricing programs, in-car music downloads, mobile devices, media
place-shifting and device-shifting, digital video libraries and social
networks. Founded in 2002, PassAlong Networks is privately held and based
in Franklin, Tennessee. For more information, visit
http://www.passalongnetworks.com.
OnTour, StoreBlocks, freedomMP3, PassAlong, Connected Consumer,
Passing-and-Points and Speakerheart are trademarks of PassAlong Networks.
All other brands are trademarks of their respective owners.
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