Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Some CDs priced to sell at $10
MSNBC.com ^ | 09/03/03 | Associated Press

Posted on 09/03/2003 9:06:42 PM PDT by Bloody Sam Roberts

LOS ANGELES, Sept. 3 — 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.
       Officials at the National Association of Recording Merchandisers did not return calls Wednesday.
       Kevin Milligan, vice president of merchandising at Torrance, Calif.-based record retailer Wherehouse Entertainment Inc., said he had not received notice from UMG, but that in general, the move is good news for consumers.
       “Whether it will ultimately be good news for retail? I think it’s still up in the air,” he said.
       Traditional music retailers such as Tower and Wherehouse have been suffering as large stores such as Best Buy, Target and Wal-Mart Stores Inc. can afford to sell music at a loss, covered by sales of more profitable items.
       UMG’s current wholesale price for a CD album is $12.02, with a manufacturer suggested retail price of $18.98.

Under the new pricing structure, the wholesale price would be $9.09. The wholesale price for CDs by a handful of performers, including Eminem and Shania Twain, would be about a dollar more, said Jim Urie, president of Universal Music & Video Distribution.
       The company also said it would cut wholesale prices on cassettes and change the suggested retail price to $8.98. Latin recordings and multiple disk packages or CD box sets would not be included in the pricing change.
       “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,” Urie said. “We are confident this pricing approach will drive music fans back into retail stores.”
       Officials at EMI, BMG and Warner Music Group declined to comment. Sony Music Group officials could not be reached immediately.
       UMG also said it would no longer give retailers co-op advertising or discounts, which are common in exchange for favorable product positioning at stores.
       Josh Bernoff, an analyst with Forrester Research, Inc. said the decision to cut prices underscores how badly the industry has been hurting.
       “That is very significant. That’s basically saying ‘we give up’,” Bernoff said.
       Revenue from album sales has declined from $14.6 billion in 1999 to $12.6 billion in 2002, according to the Recording Industry Association of America, a trade group that represents the largest recording companies.
       The recording industry blames its sales slump largely on illegal music swapping over peer-to-peer networks. The industry has begun to aggressively target people who share music using software by Kazaa and others.
       But industry critics say the record companies have, for more than a decade, ignored the effects of soaring CD prices on sales. They also contend the artistic quality of music has deteriorated.

(Excerpt) Read more at msnbc.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Extended News; Front Page News; Miscellaneous; News/Current Events; Your Opinion/Questions
KEYWORDS: kazaa; music; p2pfilesharing; recordingindustry; riaa
Navigation: use the links below to view more comments.
first 1-2021-26 next last

"Faaaascinating."

1 posted on 09/03/2003 9:06:42 PM PDT by Bloody Sam Roberts
[ Post Reply | Private Reply | View Replies]

To: Bloody Sam Roberts
When they hit the $5.88 bin (like a lot of DVDs) let me know. Until then, forget it.
2 posted on 09/03/2003 9:08:03 PM PDT by Paul C. Jesup
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
Didn't they try this in 1997? Don't they talk about this every few years?
3 posted on 09/03/2003 9:09:33 PM PDT by nickcarraway
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
Soooo....what they are admitting is that they were wildly inflating prices.

Shouldn't the Dems be demanding an investigation?

Oh wait, that's right. Rock singers tend to be LIBERAL.

Silly me.
4 posted on 09/03/2003 9:10:08 PM PDT by Behind Liberal Lines
[ Post Reply | Private Reply | To 1 | View Replies]

To: nickcarraway
Didn't they try this in 1997? Don't they talk about this every few years?

I guess it just takes some folks a while to admit they're wrong.

5 posted on 09/03/2003 9:16:41 PM PDT by Bloody Sam Roberts (®)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Bloody Sam Roberts
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.

Duh! They're finally getting it. I was at Tower Records the other day. CDs are now selling for $25 ($24.99). I bought a bunch of videos instead for $10 each ($9.99), which they're phasing out.

If the CD market has collapsed, it's due to their own greed.

6 posted on 09/03/2003 9:17:13 PM PDT by my_pointy_head_is_sharp
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paul C. Jesup
I am a professional musician(I actually know how to READ Music)and the beginning of the end began when Sony introduced the dubbing tape deck and got away with it!!Copyright Law FLEW out the window when this happened!!!Once the Genie is Out Of The Bottle......................
7 posted on 09/03/2003 9:18:01 PM PDT by bandleader
[ Post Reply | Private Reply | To 2 | View Replies]

To: Behind Liberal Lines
That's Right!Schmuck Schumer should be demanding the release of 10,000,000 cd's from the strategic reserve!!!!!!!!
9 posted on 09/03/2003 9:19:44 PM PDT by bandleader
[ Post Reply | Private Reply | To 4 | View Replies]

To: bandleader
Interesting.
10 posted on 09/03/2003 9:21:45 PM PDT by Paul C. Jesup
[ Post Reply | Private Reply | To 7 | View Replies]

To: Bloody Sam Roberts
Even $5.00 for that crap, What the FUuuuu.
11 posted on 09/03/2003 9:22:38 PM PDT by jaz.357 (Homeland security MUST shut down PETA for funding the domestic terrorist organization ELF!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
UNIVERSAL MUSIC GROUP

I wonder which artists they represent?

If all the music companies followed suit, and CDs went down to $10, I'd buy a ton of them. As it is now, I rarely buy CDs.

I hope the music companies are reading this.

12 posted on 09/03/2003 9:26:53 PM PDT by my_pointy_head_is_sharp
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
ATTENTION: Today, an American record executive is reported to have understood a supply and demand curve. Scientists are unsure at this time if it is a flukish mutation or the start of an evolutionary leap for the species.
13 posted on 09/03/2003 9:29:22 PM PDT by Arkinsaw
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
They promise to bring down the prices, but...
14 posted on 09/03/2003 9:36:01 PM PDT by nickcarraway
[ Post Reply | Private Reply | To 5 | View Replies]

To: Bloody Sam Roberts
Weird considering that the recent RIAA crack down was cited as cutting illegal downloads 20% !

I guess there was not a subsequent 20% increase in sales!

Or even a 5% increase or a 1% increase!
15 posted on 09/03/2003 9:43:30 PM PDT by Kay Soze (Free Republic- gathering place for "go along to get along Republicans" & a few Conservatives.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
Why should I pay $10 for their crap when I can make my own for free?
16 posted on 09/03/2003 9:43:45 PM PDT by nhoward14
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
The recording industry blames its sales slump largely on illegal music swapping over peer-to-peer networks.

Disagree. (My musician brother hates me.)

But industry critics say the record companies have, for more than a decade, ignored the effects of soaring CD prices on sales. They also contend the artistic quality of music has deteriorated.

Yes and Yes. Why I still own more LP's than CD's.

17 posted on 09/03/2003 9:59:02 PM PDT by Penner
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts
they offer product no one wants and thats why people dont buy the music. i only buy 8-10 new releases each year.
18 posted on 09/03/2003 10:01:24 PM PDT by Munson
[ Post Reply | Private Reply | To 1 | View Replies]

To: Penner
If your brother is one of those types that put only two good songs on a CD then BOO to him :-)

I still buy CDs but only if I am compelled to buy them. I usually buy movie soundtracks if I want the little info dust jacket and such as. I've seen CDs for $25 which is unreal. I can't believe that.
19 posted on 09/03/2003 10:08:27 PM PDT by cyborg (i'm half and half... me mum is a muggle and me dad is a witch)
[ Post Reply | Private Reply | To 17 | View Replies]

To: Bloody Sam Roberts
The RIAA can kiss my you know what. I am not spending another dollor with the music industry.

CDs are cheaper to produce than cassette tapes but tapes still sell for less. We are still being ripped off.

I will continue to enjoy my old stuff.

20 posted on 09/03/2003 10:18:34 PM PDT by Newbomb Turk
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-26 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson