Dynamic Digital Content Pricing Tiers Based on Sales Volume

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Solution Overview

Problem

Current digital content pricing systems, such as the Apple App Store, face challenges in generating sufficient revenue for developers due to price competition driven towards $0, with existing rating systems being subjective and ineffective in determining sales volumes.

Innovation Solution

A system and method for pricing digital content that ranks items and designates them into pricing tiers based on their popularity, adjusting prices dynamically based on download volumes, allowing for a fair revenue distribution model that rewards authors and content owners.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If prices are driven toward $0 to achieve volume, then sales volume increases, but revenue for developers decreases

Engineering Contradiction:

Improvesales volumeVSAvoiddeveloper revenue

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The patent implements dynamic pricing that automatically adjusts based on real-time sales volume and market demand. Prices are not fixed but continuously optimized to balance sales volume with revenue generation, resolving the contradiction between achieving high volume and maintaining developer revenue

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The system incorporates feedback mechanisms that monitor sales performance, customer behavior, and market conditions to automatically adjust pricing strategies. This closed-loop control ensures that pricing decisions are based on actual market response, preventing revenue loss while maintaining sales volume

Inventive Principle:

Principle #23Feedback

2Ease of operation

If subjective rating systems are used to evaluate digital content, then customer guidance is provided, but revenue generation remains insufficient

Engineering Contradiction:

Improvecustomer guidanceVSAvoidrevenue generation

Core Design Contradiction:

Ease of operationVSProductivity

Solution Approach 1:

The patent transitions from subjective rating parameters to objective pricing parameters based on market demand and sales data. By changing the evaluation metric from subjective ratings to data-driven pricing signals, the system maintains customer guidance while significantly improving revenue generation

Inventive Principle:

Principle #35Parameter changes

Solution Approach 2:

The system replaces the mechanical rating system with an automated pricing algorithm that uses market data to guide customer decisions. This substitution eliminates subjectivity while maintaining the guidance function and adding revenue optimization capabilities

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS10977676B2Method and system for digital content pricing

Publication Date: 2021.04.13 SCRIBLIOTECH

AI summary

A method for pricing digital content available for purchase and download from a server to a network connected computing device includes providing a quantity of digital content items, which are ranked. A plurality of pricing tiers for the digital content items is created. A sale price of each of the digital content items is designated based on the rank. At least a portion of the digital content items is made available for purchase wherein the sale price for the content to be displayed on at least one user computing device. A download request is received from the user computing device to download at least one digital content item. The sale price of at least a portion of the quantity of the digital content items is adjusted according to the pricing tiers.