New Research Explains Why People Aren't Buying More Music

And How The Music Industry Could Make More Money      01/02/10

New Research Explains Why People Aren't Buying More Music


Buying Choices

Record labels could significantly increase their profits by - paradoxically - lowering their prices, according to new research by Wharton marketing professor Raghuram Iyengar.

Iyengar, who studies pricing and consumer behavior, surveyed 600 digital music buyers with the goal of developing optimal pricing structures for the music industry. His research looked at both pay-per-song plans like iTunes and subscription models.

He found that not only was the pay-per-song model more popular with the digital consumers, but that their music purchases would increase sharply at a lower price. As a result, Iyengar says the optimal price to the customer is around 60 cents to 70 cents per song, rather than the typical 99-cent price.

"If the price goes down, consumer demand will go up, so much so that overall profits will be higher" explains Iyengar.

Link:

Image: Dunechaser

James Lewin
Twitter @podcasting_news

z

More News: Like This
Even more news...

 



More Videos

Rebel Technology Show New Wizard Module 

For running PureData and GEM patches in hardware


NAMM 2018: Qu-bit Electronix Nebulae 2, Scanned and Synapse 

Three new modules make up this years announcements


NAMM 2018: Montage OS2.0 Adds Workflow Enhnancements 

Eassier control assignments


NAMM 2018: Presonus Studio Live Series 3 Mixer