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| From | "bryan" <munki100@pacbell.net> |
| Subject | Re: Universal Music cuts CD prices |
| Date | Wed, 3 Sep 2003 21:09:11 -0700 |
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A little bit more...What and how will this price reduction do if the indy
record labels try to lower their prices too?....will they feel the need to
respond to these lowered prices in order to help save the mom & pop
retailers? The end of all traditional retail co-op and discount programs,
including price-and-positioning and rebates, long standards in the retail
biz, is another big piece of this puzzle....Who knows how this will affect
advertising and marketing departments, for instance, on both sides of
the record company and newspapers/alt weeklies/magazines, etc. who
have already scene a HUGE drop in advertising money from record
labels.....Co-op dollars spent in local news weeklies drives customers
into the stores...If you are Best Buy you have the means to get them
through the door anyway, but what if you're an indy retailer...no co-op
ads? Yeah, it's going to cause all kinds of problems for retailers...the
chains, for instance, will mostly likely be unable to compete with
Amazon (one example) and many will close their doors.
So, yeah, dropping prices is a cool move...but there's going to be a LOT
of fallout from this bomb being dropped today....
sorry for going off like this....
Bryan
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