This is the second in a series of posts about eMusic’s pricing strategy. (See also part 1.) In this post I discuss the possible motivations behind eMusic’s price points for the various subscription plans and booster packs, and including selection of the price points and the spacing between them, selection of per-track prices, and the use of “.99” prices.
As every eMusic US subscriber knows (or should know), the three subscription plans offered by eMusic in the US are $9.99 for 40 tracks, $14.99 for 65 tracks, and $19.99 for 90 tracks. I suspect that eMusic first chose $9.99 and $19.99 as psychologically attractive price points, and then interpolated $14.99 as the “Goldilocks price” halfway in between. I also presume that eMusic first selected the number of tracks for the $9.99 price point to achieve the magic figure of 25 cents per track, and then chose the number of tracks for the $14.99 and $19.99 price points to show a clear discount from the base plan.
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