AmieStreet.com, a new digital music store with a unique demand-based pricing system, announced the completion of its Series A financing led by Amazon.com, Inc.

AmieStreet.com is the first digital music store propelled by social networking, where members of the community drive the discovery, promotion and pricing of music. All songs on AmieStreet.com start at a price of zero cents. As more people download a song the price rises, capping at $0.98.

For recommending their favorite songs to their friends, members are rewarded by receiving 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 he or she receives to spend on music.

“AmieStreet.com grew from the idea that we needed to make buying music social and fun. The Amie Street community took over from there, driving a shift toward a music marketplace where consumers decide what is popular and what music is worth. We’re thrilled to have Amazon.com’s support in empowering music consumers,” said AmieStreet.com’s co-founder and CEO Elliott Breece.

The amount of Amazon’s investment and the terms are not disclosed.

Related posts:

1. AmieStreet.com and Myxer partner for different take on ringtone marketplace
2. Amazon.com launches Amazon MP3 store with over 2 millon songs
3. Amazon to rollout Amazon MP3 overseas this year
4. Amazon MP3 adds DRM-free music download from Warner Music Group
5. IMVU launches social music service