Aimme Street

Here’s an interesting website that I stumbled across the other day: Amiestree.com. This is another site that offers an innovative business model to combat the current issues that the music industry is facing with regards to the DRM battle. Here’s a quick overview:

All songs are free to start. Prices fluctuate over time based on demand for the song. This demand based pricing model seems like a good way to sell music. Users can search, browse and listen to music for free. Users who have purchased a song can recommend it to their friends using a limited number of “rec’s” that they receive (users get one per dollar they add to their account). Once recommended, users will get account credit if the price of the song increases, giving them an incentive to find and recommend good music. Here’s an example:

“If you REC a song at 1 cent or above Amie Street will pay you half of the difference in the prices. So, if you REC a song at 10 cents, and it ends up at 90 cents, we will pay you 40 cents (half of the 80 cents difference).
If you REC a song while it is still free (0 cents), and it ends up at 98 cents, we will deposit 98 cents into your Amie Account. Amie Street pays you more for RECing a song while it is still free because you take more of a risk and because we want everyone on Amie Street to be RECing those great undiscovered songs.”

Artists keep 70% of proceeds after $5 in sales. They are not required to sell their music exclusively through Amie Street, and can remove it at any time. I believe that this model, for the artist is extremely well thought out. Since the vast majority of bands are not concerned with people stealing their music - they just want people to listen to it. .

Based on my previous blog regarding Spiralfrog.com in comparison- I am very surprised that after further due diligence, Aimme Street has not received more publicity or attention from the record labels. This site offers a pricing structure based on a consumer demand model for the music. That seems more like a plausible solution. Payment for music based on the consumer demand - isn't that how things should work? I tell you: I feel comfortable paying a certain and amount, you win my favor and my pocket book, in return I will give you my business and continue to do so. Makes sense to me. That is how things are going to have to work from here on out in some sense; because at this point who will pay for music at full price- when they can get it for free - legally or illegally?

http://www.techcrunch.com/2006/07/23/amie-street-awesome-new-music-model/