Warner Music Group is finally getting ready to do something it’s wanted to do for a long time: Charge different prices for different digital songs. Warner (WMG) will working with an Indianapolis company called Digonex “whereby Digonex will use its proprietary technology to recommend varying wholesale prices to WMG for select digital album downloads,” Warner tell us in a release.
Finally, a pricing model that makes some kind of sense. Right?
Not really: Not until until Warner can tell us which songs they’re trying this with — Madonna‘s catalogue? Or Unloco‘s? — and not until Warner can tell us which retailer has agreed to variable pricing.
Steve Jobs has been stubborn about keeping prices at his iTunes (AAPL) store uniform, so we don’t see that happening there. Maybe Amazon (AMZN) would try it, but we think this test will actually be more meaningful at a digital retailer that specialises in music, like… um… iTunes.
In any case, we’re eager to hear more, but we don’t think WMG execs will be boasting about this anytime soon. If they had real news, they wouldn’t be talking about it now, just a few days before their earnings call.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.