In the olden days, consumers would frequent establishments that made profits by selling music on various forms of physical media, at a premium. When new, popular albums were released, the "kids" would run to these stores in droves, plunking down money made from part-time jobs (instead of their parents' wallets, as today's children do). The more popular an album, the less it cost. The establishments understood that a lower price would attract more consumers when the demand was high.
The unfortunate underbelly of this tactic was the overpricing of music that was not currently in demand. Albums that were perhaps a few years old, containing a level of quality far surpassing the current pablum, cost a small fortune. Often these albums were located in the back of the establishments, covered in dust, and requiring grueling trials of unforeseen sadness to acquire them.
Warner Music Group, a large multinational corporation currently possessing the rights to a buttload of music, have decided to bring this "old-school" selling tactic to the new frontiers of digital delivery. Through a partnership with Digonex, a company that specializes in glossy Powerpoint slides and marketing jargon, Warner intends to "dynamically" "optimize" the pricing of "digital media" in their "online marketplace." In other words, they're gonna fuck with the prices on iTunes.
From the press release itself: “Digonex’s technology provides us a unique window into one of the key variables that impacts consumer behavior and by employing tools such as these we can continue to refine and improve our digital offerings,” said Larry Mattera, Senior Vice President, Digital Sales & Marketing, WEA Corp, WMG’s U.S. sales and marketing company.
i.e., they will make more money.
