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Universal to Lower CD Prices
Universal betting on lower prices to boost CD sales
Reuters, Mar 19, 2010 8:00 pm PDT
Universal Music Group (UMG) is embarking on one of the most ambitious efforts yet to boost U.S. CD sales, with the test of a new pricing structure designed to sell most new releases by current artists at $10 or less at retail.
The major's "Velocity" pricing program responds to the continuing plunge in CD sales, taking aim at brick-and-mortar retail stores that have scaled back on floor space dedicated to music. The pricing adjustments will also bring CD prices more in line with what consumers pay for digital albums at online retailers like iTunes and Amazon.
"We think it will really bring new life into the physical format," Universal Music Group Distribution chairman/CEO Jim Urie says.
Universal, which accounts for 28.7 percent of year-to-date U.S. album sales, according to Nielsen SoundScan, will cut UMG's main wholesale price point of $10.35 to about $7.50 or less for front-line releases, which are generally by established current artists. It's also breaking with prevailing industry practice by putting suggested retail prices on CDs, ranging from $6 to $10.
source : http://new.music.yahoo.com/godsmack/news/universal-betting-on-lower-prices-to-boost-cd-sales--62000139
Reuters, Mar 19, 2010 8:00 pm PDT
Universal Music Group (UMG) is embarking on one of the most ambitious efforts yet to boost U.S. CD sales, with the test of a new pricing structure designed to sell most new releases by current artists at $10 or less at retail.
The major's "Velocity" pricing program responds to the continuing plunge in CD sales, taking aim at brick-and-mortar retail stores that have scaled back on floor space dedicated to music. The pricing adjustments will also bring CD prices more in line with what consumers pay for digital albums at online retailers like iTunes and Amazon.
"We think it will really bring new life into the physical format," Universal Music Group Distribution chairman/CEO Jim Urie says.
Universal, which accounts for 28.7 percent of year-to-date U.S. album sales, according to Nielsen SoundScan, will cut UMG's main wholesale price point of $10.35 to about $7.50 or less for front-line releases, which are generally by established current artists. It's also breaking with prevailing industry practice by putting suggested retail prices on CDs, ranging from $6 to $10.
source : http://new.music.yahoo.com/godsmack/news/universal-betting-on-lower-prices-to-boost-cd-sales--62000139
Comments
I still buy cd's a lot.