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Guest beardo

Universal Music to Cut CD Prices to Under $13

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Guest beardo

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.

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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

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Guest beardo

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

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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.

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Guest beardo

ah, nevermind, you buy from the corporate devil. that doesnt count

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Guest imported_Tesseract

Looks like they finally realised what they had to do so everyone will be happy.

 

Good job

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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.

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Guest
Originally posted by Swiffer Jet

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

 

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.

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Guest WebsterUno

*believe*

 

I go to StreetLight Records, Rasputins, and Amoeba.

I used to frequent Star records, before it closed

down. I still buy cassette singles, and I find them

for like 50 cents to a dollar at those stores. Also,

buyig used CDs isnt a bad thing. They always work.

You can find them for about 8 bucks tops. Lately,

I havent bought any CDs though. Ive been buying

wax everytime I go in there. Wax and tapes.

20 bucks can go a long way when you spend it

on used items. I can walk out with a handful of

old jams on vinyl and cassette vs. walking out with one CD.

Unless Im buying something that just came out.

2 to 3 used CDs for about $20.

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Guest WebsterUno
Originally posted by patatasbrava

thats great considering they only cost a few pennies to make.

 

yeah, no shit right?

you can buy a spindle of 50

recordable CDs for $7.

Im sure they get em way cheaper.

And yeah, CDs have always

had those damn "NICE PRICE"

stickers on em, and theyre still over

$10, for an album that was recorded

in 1984...??? Jessica Simpson

sold hers for $4.99 just recently.

And thats a brand new CD.

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Guest

The thing that always kills me is that old disc cost more than new ones.

Any bands latest disc will probably be $4-6 cheaper than a disc 5 years old.

I guess the promotions of a new release will cut the price, as will a larger

volume of sales... but it sucks!

 

It makes filling in a collection way more expensive than just buying the

latest filler on the shelves. Luckily that's where the used shops come into play.

 

webs knows what time it is!

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webs, you might wanna check out ebay... my man gets a lot of cassettes off there, and i've seen him get like 12 albums (mostly out of print stuff too) on cassette for like 2 bucks.

 

i got the best of kool moe dee for 50 cents at big lots

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Guest WebsterUno

*believe*

 

yeah, my homie was on there

buying a shitload of 80s music,

on wax, for a buck a piece.

Not a bad idea...thanx

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Guest beardo

funny you guys bring up tapes. i just saw the new radiohead album on tape and thought it would be funny to grab. there were only 2 on the shelf.. pretty low run id bet.. maybe get into collecting newer shit like that on tape, looking back in a few years it would be hilarious.

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Guest imported_El Mamerro
Originally posted by Kilo7-

I mean it's not like we live in igloos.

 

Pffffft, yeah right...

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Originally posted by WebsterUno

Jessica Simpson

sold hers for $4.99 just recently.

And thats a brand new CD.

 

whoa! 4.99? that sounded too good to be true so i went looking around at bestbuy and amazon. both sell it for 10.99

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Guest WebsterUno

*believe*

 

well, I should have said where,

but I cant say. It was a special promo

deal made with my company, and

her label. They sold it for a special

price. Thats no lie. Why would I lie

about that?

 

ahem, ahem...please refer to my subject line!

 

;)

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