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ivan@stellysee.de
| From | Not Lame <popmusic@notlame.com> |
| Subject | Prices.......retailers.....hell |
| Date | Fri, 05 Sep 2003 11:06:14 -0600 |
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>> Another BIG question: WHAT HAPPENS TO STOREFRONT RETAILERS??
>>
>
> Based on the fact that Universal wants to drop the wholesale price from
> $12.02 to $9.09 ($2.93), but would like the retail to drop from $18.98 to
> $12.98
> ($6.00), I think we can anticipate many more stores going under. With less
> possible margin (on both a dollar and % basis), and the pressure from the
> e-tailers and big box stores to keep the prices low, there won't be much money
> to pay
> for things like rent. And eventually Wal-Mart, Amazon, and Best Buy will
> account for the vast majority of CD sales, at which point they will have even
> more
> leverage with the record companies than they do now, and they'll probably use
> that leverage to keep their revenue stream alive by getting a piece of the
> download action.
>
> Mark
>
I can definitely attest that this IS a real problem......there's already
been no money in doing labels for a long time now(and everyone thinking
there is) but this front had steady margin for a long while until the last
year or two.....and this is going to take a lot more stores(950 music retail
stores were lost in 2002, more this year it appears) w/ them.
Can a bum a smoke? Will turn up the volume for food.
Bruce @ Not Lame
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