Universal to cut wholesale prices of CDs

[Desperadoe]

LOS ANGELES - Universal Music Group, whose roster of artists includes 50 Cent, U2, Elton John and Diana Krall, will cut the price of its wholesale CDs and push for a $12.98 retail cap on its discs in an attempt to woo music fans back into record stores.

The world's largest recording company hopes retailers, who have suffered as industrywide music sales dropped 31 percent the last three years, will follow its lead and pass on the savings to consumers.

Universal hopes the actual retail price of most of its CD will end up about $10 or less, comparable to the $9.99 retail price that music fans enjoyed in the early 1990s, at the height of a price war between the recording companies.

"Our new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products," said Jim Urie, president of Universal Music & Video Distribution. "We are confident this pricing approach will drive music fans back into retail stores."<snip>

http://www.philly.com/mld/philly/6690052.htm

[Richardo]

1. OK everybody: On three - DUH!!!

One....


Two....



THREE!!

[buckfush2]

2. still cheaper to download for free

if my calculations are correct

[Cronus Protagonist]

5. Yeah, but the quality is usually poor

I would download to get a free listen or two, and if I like it, I'll spring for the CD so I can rip at a higher level and cut out the crap that I don't like.

Click Here To See Fair & Balanced Buttons, Stickers & Magnets!>

[UpInArms]

3. let's see IIRC

Universal hopes the actual retail price of most of its CD will end up about $10 or less, comparable to the $9.99 retail price that music fans enjoyed in the early 1990s, at the height of a price war between the recording companies.

hmmmm -- the cd market was relatively new in the early 90s - and in brand new in the late 80s -

the prices started around $10 for a cd and they justified this cost (lots higher than vinyl) because someone had to pay for the infrastructure -- they (the recording companies) said that after the cost of the infrastructure had been recouped, the price of cds would come down comparatively --

just seems like that whole scenario must have been a figment of my overactive imagination - 'cause the price only went up - never down

[nothingshocksmeanymore]

4. And now to do this will only squeeze small chains out of business

That is the real goal

[DemNoir]

6. Back in the day...

When records were priced at around $5.00 they were an "impulse buy". One could stumble into a shop, see something you might like, and buy it without much thought. Now at close to $20 its a significant buying decision for many.

Lower the price to Under $10 and I really think sales will soar.

[Heddi]

7. I remember saving my allowance

so I could have $20-$30 at a time so I could go to the mall and buy TWO OR THREE CD's AT A TIME.

Music today is crap---that's why I think the last CD I bought was something by Jane's Addiction or Nirvana---both CD's were bought before band members died, or the bands broke up....so that was some time ago.

Even then, I think the price was around $15 or so....

A year or so ago we wandered into a record store and I was shocked..just shocked to see that CD's were going for $20 and up, and the cheapo "clearance" CD's were $15.

That's just insane. There's no reason for those things to be so expensive, ESPECIALLY since the techonology to make them has been greatly improved in the last 15-20 years so they're much CHEAPER to produce NOW than they were when I was buying them for $7.99 a pop

[zekeson]

8. I've heard the 10$ CD for years

At first, in the 80's, it was to inflate the price of the LP - Lets sell CD's so that we can boost that price above 10$ - more cash for the corps. Well, they skipped right by 10$. For the last several years I have heard discussion that with all the new technology and low costs they'd get prices below 10$. I'll believe it when I see it.

[sendero]

9. it is a good first step...

... at least one company is addressing *part* of the problem, CDs are *way* overpriced.

Part of the reason is the ridiculous sums of money they spend "promoting" "artists". As soon as they cut back on that game, they might realize that the great artists of history by and large did not need a huge amount of promotion, they had something better, talent.

Once they stop wasting their money trying to make a silk purse out of a sow's ear (Brittney comes to mind :)), maybe they can afford to lower the price even more and we can start hearing real artists and not "today's catch".

Ok, rant over :)