The Economics of Flat Fee


One of the sharpest minds in digital music has spoken: flat-fee pricing will have to come in, and that’s what it will be. Jim Griffin, CEO of Cherry Lane Digital, speaks with a lot of passion, and here’s what he thinks: “Newspapers have always known that if they sold the sports section separately, they could finance the rest of the paper. We know when we get cable TV that we have to buy the channels we don’t want to get the ones we do. Not many cellphones are sold now without a bundled price. We’ve seen that transition in ways. For intellectual property we almost always thrive better with bundles.”

“99 cents is both too high a price and too low. It’s too low to pay for the burden of a developing artist, and it’s too high to fill an iPod. What the sweet spot is, is the recognition of the low or non-existent cost of delivering digits.”
Related: Jupiter Plug.IN: Keynote: Jim Griffin, CEO, Cherry Lane Digital

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