SOURCE: PassAlong Networks

February 28, 2007 08:00 ET

Nettwerk Music, PassAlong Networks and Digonex Technologies to Pilot Music Industry's First Variable-Pricing Model for MP3 Music Downloads

PassAlong Stores to Offer MP3 Downloads from $0.29 to $1.39

FRANKLIN, TN -- (MARKET WIRE) -- February 28, 2007 -- PassAlong Networks™, developer of digital media innovations and services, today announced an agreement with Nettwerk Music and Digonex® Technologies, Inc. to pilot the music industry's first variable-pricing model for MP3 downloads. Using patented Digonex pricing technology, PassAlong will test variable pricing for Nettwerk Music's MP3 catalog in the 44 stores it powers through its StoreBlocks™ platform. Prices for individual tracks will range from $0.29 to $1.39.

Nettwerk Music, who manages artists such as Sarah McLachlan, Avril Lavigne, Barenaked Ladies, Jars of Clay, Leigh Nash, Guster and dozens more, will make available most of its MP3 catalog for the tiered-pricing pilot.

"We are in the business of building brand and making content readily available to the fans of our artists," said Terry McBride, CEO of Nettwerk Music. "We owe it to our artists and their fans to continue to explore new models. We look forward to breaking new ground with PassAlong Networks and Digonex on this pilot test."

Music labels and online retailers have resisted calls for variable pricing despite suggestions that fixed prices stimulate illegal downloads. "With so much debate raging over fixed pricing, we're excited to be first-to-market with a variable pricing model," said Dave Jaworski, co-founder and CEO of PassAlong Networks. "The goal is to maximize revenue by pricing digital content in a way that motivates consumers."

The multi-tiered pricing feature for Nettwerk's MP3 catalog will be offered in PassAlong's digital media services engine, StoreBlocks, which currently powers more than 44 music download stores, including eBay®'s and Procter & Gamble's. Nettwerk's MP3 songs will be offered in prices ranging from $0.29 to $1.39. The song price will then be adjusted up or down according to the Digonex consumer demand driven pricing engine, which systematically changes pricing based on Internet economics and consumer behavioral principles.

The pricing pilot is to begin this spring and extend through early fall. Results will be reviewed periodically and adjustments made to the pilot accordingly.

"Our technology is designed for properly pricing digital content," said Jan Eglen, CEO of Digonex Technologies, Inc. "We're glad to combine with partners that can provide a high-caliber content catalog and a world-class digital distribution network to make this type of pilot a success."

About Digonex Technologies, Inc.

Software developer Digonex Technologies focuses primarily on development of automated and optimized pricing platforms for e-commerce, allowing client companies to increase customer retention, and maximize revenue. Digonex has also developed Nabit®, an important worldwide eBay buyer application. For more information, visit Digonex Technologies' website at www.digonex.com.

About Nettwerk Music Group

Nettwerk Music Group is Canada's leading privately owned record label and artist management company, responsible for managing some of North America's biggest artists such as Sarah McLachlan, Avril Lavigne and many others. Nettwerk has several offices located around the world including New York, Los Angeles, Boston, Nashville and London. Its home office is in Vancouver, B.C.

About PassAlong Networks

PassAlong Networks is a developer of digital media innovations and services designed to enhance the Connected Consumer™ ecosystem. PassAlong's B2B2C technology engine provides four key services for the digital media marketplace: StoreBlocks™ offers a variety of store-building tools to enable clients to provide their end-consumers with a library of more than 2 million licensed songs and the powerful music referral system, Passing-and-Points™; freedomMP3™ provides interoperability for digital media files, including raw MP3 files, across multiple platforms and devices while promoting a balance of artist rights and media empowerment for both content creators and consumers; OnTour® connects fans to detailed, accurate and relevant concert notifications; and Speakerheart™ enables artists to seamlessly upload, promote and sell their digital music. Founded in 2002, PassAlong Networks is privately held and based in Franklin, Tenn. For more information, visit http://www.passalongnetworks.com.

OnTour, StoreBlocks, freedomMP3, PassAlong, Connected Consumer, Passing-and-Points and Speakerheart are trademarks of PassAlong Networks.

Digonex and Nabit are trademarks of Digonex Technologies, Inc.

eBay is a registered trademark of eBay, Inc.

Contact Information

  • PR Contacts:

    Lindsay Cleveland
    B: 615.425.5864

    Skip Franklin
    PassAlong Networks
    B: 615.425.5999
    Email Contact

    Jeff Fox
    The Blueshirt Group, for PassAlong Networks
    B: 415.828-8298
    Email Contact