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Universal Music to Cut CD Prices to Under $13

Discussion in 'Channel Zero' started by beardo, Sep 4, 2003.

  1. beardo

    beardo Guest

    awesome. i can finally get those albums i always wanted


    Universal Music to Cut CD Prices to Under $13
    Wed Sep 3, 6:51 PM ET Add Entertainment - Reuters to My Yahoo!

    By Derek Caney

    NEW YORK (Reuters) - Universal Music Group, the world's largest record company, on Wednesday said it will cut list prices on compact discs by as much as 30 percent in an effort to boost sales that have been stymied by free online music-sharing services such as Kazaa.

    Starting in October, Universal, the home to such artists as Mary J. Blige (news), U2 and Elton John (news), will trim its prices on most of its CDs to $12.98 from its current $16.98-$18.98 range of prices.

    "Our research shows that the sweet spot is to sell our records below $12.98,' said Universal Music president Zach Horowitz. "We're confident that when we implement this we will get a dramatic and sustained increase."

    Historically, large retailers have sold new CDs at considerably less than the so-called "manufacturer suggested retail price."

    "We expect this will invigorate the music market in North America," said Doug Morris, the label's chief executive. "This will allow retailers (to sell) for $10 or less if they so choose."

    The price cut comes as the company has endured the enormous popularity of free music sharing services, which the labels blame for music piracy.

    Universal, which is owned by Vivendi Universal, sees the price cuts as part of a larger strategy to discourage people from downloading music from the free services.

    The record industry has already begun suing individual users of these services for copyright infringement. The labels have also begun offering their music to online music services that charge for each song downloaded, one of the most popular of which is Apple Computer Inc.'s iTunes.

    "As people will begin to migrate from illegitimate services, they're going to be exploring a host of options -- some online and some through retail," Horowitz said. "We felt that the most important thing we can do to encourage people to go back into stores is to reduce our prices dramatically."

    Wholesale prices for CDs would decline to $9.09 from $12.02. For a handful of bigger name artists, wholesale prices would be $10.10 for a short period of time.

    Universal also said it would stop "cooperative" advertising, in which the label subsidized advertising by retailers in local markets and instead advertise directly to consumers. It will also withdraw other discounts to retailers.

    "(Our buyers) haven't had a chance to talk with Universal at this point to get details on how it might affect the business," said a spokesman from Circuit City Stores Inc. . A spokeswoman from Best Buy Co. Inc. declined to comment.

    Amazon.com Inc., Tower Records and Trans World Entertainment Corp. did not immediately return phone calls requesting comment.

    The other major labels -- AOL Time Warner Inc.'s Warner Music, Bertelsmann AG (news - web sites)'s BMG, EMI Group Plc (news - web sites) and Sony Music Group -- declined to comment.

    Some music executives questioned how much impact the price cuts will have.

    "This doesn't have as much impact as it looks," one record executive said. "The labels were offering some discount programs to the retailers that would now end. So it's not entirely clear how much of a change there is for retailers' margins."

    Another executive noted that larger retailers like Wal-Mart Stores Inc, Best Buy and Circuit City already sell CDs at around $13 anyway to get people into the stores to buy bigger ticket items.

    "It remains to be seen what this means for the specialized retailer of CDs," he said.
  2. Swiffer Jet

    Swiffer Jet Elite Member

    Joined: Jul 14, 2003 Messages: 2,669 Likes Received: 0
    so they finally take notice.

    CDs usually cost me between $8-$13.99

    where the hell do you guys purchase CDs at? sheesh :eek:

    you would only catch me dishing out $16+ on imports.

    edit: wrong smiley
  3. beardo

    beardo Guest

    more like, where do YOU get your cds where they cost 8-14 dollars??
  4. Swiffer Jet

    Swiffer Jet Elite Member

    Joined: Jul 14, 2003 Messages: 2,669 Likes Received: 0
    bestbuy. not that many CDs are 7.99 though. that's how much mr.lif's CD cost me. guess it depends on their popularity.

    wait, but aren't you located in canada? shit, it's going to be expensive for you guys no matter what.
  5. beardo

    beardo Guest

    ah, nevermind, you buy from the corporate devil. that doesnt count
  6. Looks like they finally realised what they had to do so everyone will be happy.

    Good job
  7. Swiffer Jet

    Swiffer Jet Elite Member

    Joined: Jul 14, 2003 Messages: 2,669 Likes Received: 0
    HAHAHA well the private music stores run around $13-15. so i guess it's not that bad.
  8. crave

    crave Veteran Member

    Joined: Jan 20, 2002 Messages: 6,728 Likes Received: 10
    i still don't see myself buying cd's in the future, for the most part.
  9. metallix

    metallix Elite Member

    Joined: Oct 7, 2001 Messages: 2,955 Likes Received: 1
    i still won't buy then. fuck consumption.
  10. Pistol

    Pistol Dirty Dozen Crew

    Joined: Jul 12, 2001 Messages: 19,364 Likes Received: 299
    big stores like target walmart best buy etc. sell CD's cheaper at a loss so you come into the store and suckered into something they marked up.

    fuck universal. fuck frenchies.
  11. Vanity

    Vanity Veteran Member

    Joined: Apr 11, 2000 Messages: 7,673 Likes Received: 6
    that was the price like 5 years ago... and i still didn't but em then.
  12. the_gooch

    the_gooch 12oz Loyalist

    Joined: May 15, 2002 Messages: 11,566 Likes Received: 431
    WOW, it's about time!!!!

    yeah best buy is the shit for cheap cd's
  13. caL

    caL Senior Member

    Joined: Feb 7, 2003 Messages: 2,056 Likes Received: 0

    *dls song*
  14. --zeSto--

    --zeSto-- Veteran Member

    Joined: Jul 12, 2000 Messages: 6,979 Likes Received: 2
    nope. Beard's not a Canuck, and prices here are similar to yours.

    right now $14(cdn) = $10(usd) so CD prices are pretty much the same
    up here as they are down there. I mean it's not like we live in igloos.
    And I only buy rare imported cds or crap cds you find in variety stores
    for like $5. I got a 'bets of bob marley' I had never seen before with
    some good tracks on it. A 'Best of Pink Floyd' for a fiver too.
    You can find cheap music if you look.
  15. patatasbrava

    patatasbrava Junior Member

    Joined: Jun 17, 2002 Messages: 131 Likes Received: 0
    thats great considering they only cost a few pennies to make.