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| From | Ralph Alfonso <ralph@nettwerk.com> |
| Subject | BMG Germany Introduces No-frills and Deluxe Versions of CDs |
| Date | Fri, 6 Aug 2004 12:32:42 -0700 |
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here's something interesting....
BMG Germany Introduces No-frills and Deluxe Versions of CDs
BMG Germany will begin selling CDs in three different versions:
basic, regular and deluxe. The basic version will include only
minimum information about the artist and the CD printed on the CD
itself, similar to home-made CDs, and will be priced at ¤9.99. There
will be no artwork or lyrics. The regular version, at ¤12.99, will
include cover art and lyrics, while the deluxe version will contain
bonus content such as DVD. It will retail for ¤17.99. Front-line CDs
are normally priced at around ¤19.99.
BMG Germany/Switzerland/Austria president Maarten Steinkamp says the
company hopes the new pricing system will increase sales in Germany
by 25 percent. The company will start with local product this August
and, if successful, the program will be extended to other product.
Sony Music will begin a similar program in the fall.
Sales of CDs fell 18 percent to 146.8 million units in 2003,
according to the International Federation of the Phonographic
Industry. Recently, the German division of BMG reduced its local
artist roster by 60 percent. The company determined that 85 percent
of albums by its domestic artists sold fewer than 25,000 copies, a
situation described as unsustainable.
(Abstracted from BMG Plans to Test Three-Tier Pricing Structure For
CD Albums In Germany During August, Billboard, July 4, 2004;
Tracking, Music and Copyright, July 21, 2004; and BMG To Punt Cheap,
No-frills CDs, by Jan Libbenga, The Register, July 6, 2004)
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