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| From | Michael Coxe <michael@audities.net> |
| Subject | Re: Universal Music cuts CD prices |
| Date | Thu, 4 Sep 2003 11:03:17 -0700 |
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Jaimie Vernon wrote:
>At Date: Wed, 03 Sep 2003 22:20:12 Kelly wrote:
>
>>Universal Music Canada is cutting the wholesale and suggested list prices
>>on CD albums by ~30% in an >effort to win back Internet downloaders who
>>have complained about high retail prices. Universal will institute a $14.98
>>(CDN) maximum suggested list price on virtually all of its top line CDs and
>>a >$9.99 price tag for developing new artists.
>
>And retail will STILL put them on the racks at $17.99 or higher. I've
>reduced most of my wholesale costs below $10.00 on CDs to retail and they're
>still popping up in HMV and Music World for $24.99.
>Suggested list price needs to be enforced as MANDATORY maximum list price or
>retail will put us all out of business.
No, the online retailers will kill the storefronts that don't move.
They can & will lower their prices due to competition from other online
outlets. I've seen this sort of action in high tech ever since high
tech went consumer in the 80's. Whole industries change face or
sometimes disappear in a matter of months due to the new cost model
these changes bring. The latest has sure hit me hard employment wise
(as much a reason as the dot-com bomb, Y2K spending halt, Sept 11 or
Iraq).
- michael
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