This pilot utilized Digonex’s proprietary technology, the Digital Online Exchange™ (DOE™), to recommend varying wholesale prices for digital album downloads with the intention of capturing additional profitability compared to traditional fixed pricing. Sales over the 12 weeks of testing significantly outperformed both industry sales and the label’s historical sales.

The pilot demonstrated that DOE can dramatically increase revenues and demand can be discovered through price experimentation in the PassAlong online store environment.

The first live test of Digonex’s dynamic pricing software, designed to test the viability and acceptance of dynamic pricing in the digital media market. This experiment illustrated that the one-size-fits-all $0.99 price for singles keeps many buyers out of the marketplace and that consumers are clearly eager to embrace a new pricing model for online purchases.