This is the first round of financing for New York City’s AmieStreet.com, a year-old online digital music store. The company is different for its radical approach to pricing. All songs are free to begin with. But as more members of the site download a song, indicating popularity, the price of the song goes up, capping at 98 cents.
The site rewards members who recommend songs to their friends on the site, giving them credit for the purchase of additional music on AmieStreet.com. The more popular a song becomes after a member has recommended it, the more credit they receive to spend on music. This drives users to keep and discovering music.
Anyone can upload their music to AmieStreet.com, and all songs are downloadable in DRM-free mp3 format.
This is just the latest move that will help Amazon get kudos among the developer community. It has offered services that helps start-ups take care of their infrastructure needs cheaply, and recently launched its own payment service.