Digonex Brings Dynamic Pricing to the Music & Entertainment Industry

INDIANAPOLIS & CANNES, France--(BUSINESS WIRE)--Jan. 20, 2006--At the MIDEM Conference today, Digonex Technologies, Inc., located in Indianapolis, IN, announced the global availability of the Digital Online Exchange (DOE), a dynamic pricing service that systematically changes pricing based on Internet economics and behavioral principles. The software uses its own proprietary algorithm, based on patent pending technology, to continuously identify the "sweet spot" where prices follow perceived market value and generate the maximum economic return. The result is the maximum profit for sellers of digital content and fair prices for consumers.

"We are pleased to announce the global availability for DOE to the music and entertainment industry at this truly global event," said Digonex CEO Jan Eglen, PhD.

“One of the clear messages we found from our study is that people will pay for music if they believe it is priced fairly”

Adapting to a growing market opportunity, the company has evolved the pricing platform into a flexible, portable technology designed to meet the growing market demand for innovative pricing infrastructures. DOE has been used in dynamically pricing digital music at MusicRebellion.com for the past two years.

DOE will allow record companies, artists and consumers to benefit from market based pricing (regardless of currency), for digital music. Highly popular music will provide labels and artists a premium for their work. Music not currently in high demand will have sales stimulated by lowering the price in an orderly manner. For example, a new digital track may have a market price of $1.19, while an older, back catalog track may sell for $.49 - with both prices being determined by DOE using a sophisticated set of algorithms.

"We believe that artist contributions that are in higher demand are worth more that those in less demand, and that fixed and tiered price models are inefficient," said Michael Wanchic, Vice President of Digital Media for Digonex. "DOE provides the music industry with a tool to provide fair prices for all digital music," Wanchic added.

Digonex undertook a number of pricing experiments in the past year, including dropping the starting price of 300 digital tracks to .05, and dynamically pricing the music. "One of the clear messages we found from our study is that people will pay for music if they believe it is priced fairly," said Eglen. "We also found that there are clear differences on what people are willing to pay for new music verses back catalog music. DOE recognizes that one price does not fit all."

DOE integrates easily with existing pricing systems and is offered as a service to any digital music provider. It allows users to specify a minimum, maximum and starting price for each track or album to be priced. DOE works within these parameters to determine the true market price.

About Digonex Technologies, Inc.

Digonex Technologies focuses on development of automated and optimized pricing platforms for e-commerce, allowing client companies to increase customer retention, and maximize revenue.

For more information, visit the Digonex Technologies website at www.digonex.com.