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POPSListen to Music Free, but Pay to Carry
"Lala's pricing model, too, runs counter to the way the music industry has done things. Prices will be 'dynamic,' or based on demand for a particular title and other factors, including the existing content of a user's personal music library. Typically, labels use low prices to drive music discovery, often subsidizing big discounts for brand-new albums on the theory that generating word-of-mouth interest will provide momentum in the future. They also sometimes cut prices on blocks of older titles during special promotions. But for most older albums, they often charge a premium, figuring that people buying older music are less likely to be doing so on a whim after, for example, hearing the song on the radio. Lala, by contrast, plans to use its variable pricing system as more of a customer-loyalty program. Low prices will be used as 'a reward, not an enticement It's like the Las Vegas comp system: The more you buy, the better deals you get.'" I'm totally checking this out.
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