CDs to get cheaper

[mactastic]

Link (http://msnbc.com/news/961201.asp?0cv=CB10)

Looks like Universal Music is (belatedly) trying to revive slumping CD sales. $10 is about all I'm willing to pay for an albumn anyway. That's what I can get one for on iTMS, so that would make me a lot more tempted to actually go to the store to get the physical disk, liner notes, etc.

The world’s largest recording company said Wednesday it would slash wholesale CD prices in hopes of reviving music sales, which have dropped 31 percent industrywide in the last three years.

UNIVERSAL MUSIC GROUP said it would cut the suggested sale price on a majority of its CDs by $6 to $12.98. The company hopes retailers will follow its lead and drop their CD prices to around $10 or less. The price changes would go into effect by Oct. 1.

“We expect (this) will invigorate the music market in North America,” UMG Chairman and CEO Doug Morris said in a conference call Wednesday.

It was not immediately clear how retailers would respond to the move. Company officials said they had not discussed the pricing strategy with retailers, who would be notified formally on Thursday.

[mactastic]

Oh shoot, the one place I forgot to look for this was MacBytes! Sorry, my bad!

[Peyote]

Probably most retailers will see this as a chance to gain a better profit margin on CD's...not a chance to pass savings on to consumers. I doubt final prices will go down to $10. Maybe down by $2, but not down by $6.

[eyelikeart]

Absolutely...this is about gaining control back from the filesharing & internet services. Record companies aren't the least bit interested in what the consumer wants, only money. If it were otherwise, prices wouldn't have been so high to begin with in the last 10 years, and this would not have had to happen.

[jelloshotsrule]

Originally posted by Peyote
Probably most retailers will see this as a chance to gain a better profit margin on CD's...not a chance to pass savings on to consumers. I doubt final prices will go down to $10. Maybe down by $2, but not down by $6.

bingo.

virgin and sam goody and tower will continue to charge 17 or 18 bucks, but they'll just be making more profit on it all

so, i guess their stocks are gonna shoot up... as it were.

[mactastic]

Yeah but someone will want to undercut the competition and will lower prices just to get the business. Walmart and others sell them at a loss already just to bring in business.