VHX just released an analysis of its new pay-what-you-want feature. The online video selling platform has given publishers the option to let fans pick a range of prices to download videos (as long as that range goes no lower than $1).
The feature comes with options. One option is to let publishers incentivize paying more with bonus content. Another option is to just include the bonus content with the main content and turn on the ‘pay what you want’ feature.
It sounds like most publishers are setting their base price at or near the amount they would have charged if it were a flat price system.
VHX staff wondered whether people went further over the price when it unlocked content or if they went further over when it was simply a base price and the slider went up.
The startup is reporting that publishers who use bonus content do worse than the ones who include bonus content in their base price. Apparently, people ratchet up the price more when no one tries to persuade them to.
So the lesson VHX draws is that you shouldn’t use bonus content to unlock a higher payment. That may be true, but it could also be that the creators with the most reason to feel confident in their fans’ response and generosity are the ones who simply sell at the base price without any attempt to nudge a bit more.
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