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| From | Michael Coxe <popville@gmail.com> |
| Subject | Years late, Universal cuts CD prices to combat poor sales |
| Date | Fri, 19 Mar 2010 11:49:49 -0700 |
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For something not RIP related (except to the music industry in whole)
http://arstechnica.com/media/news/2010/03/years-late-universal-cuts-cd-prices-to-combat-poor-sales.ars
<http://arstechnica.com/media/news/2010/03/years-late-universal-cuts-cd-prices-to-combat-poor-sales.ars?utm_source=rss&utm_medium=rss&utm_campaign=rss>
excerpt:
Sales of digital downloads have not been enough to make up for the
decline of CD sales since its peak in 2000. Universal Music Group plans
to soften the fall of CD sales by dropping prices across the board
<http://www.billboard.biz/bbbiz/content_display/industry/e3i56ed42b9a46f8554e2671afccecca01b>,
to a maximum of $10.
The company plans to test lower prices beginning next month and
continuing throughout 2010. Nearly all of UMG's CDs will priced between
$6 and $10. UMG is hoping that increased volume will make up for the
price drop, and the company plans to create more higher-priced "deluxe"
versions for more hardcore fans.
"We think [the new pricing program] will really bring new life into the
physical format," Universal Music Group Distribution president and CEO
Jim Urie told /Billboard/.
Retailers have been clamoring for lower retails prices, with many
believing that $10 is the magic number to spur sales. (I'll admit, I
rarely buy a physical CD for more than $10 these days). A recent test
from Trans World Entertainment showed that a $9.99 price point doubled
CD sales in over 100 of its stores.
Rock is dead, long live rock!
- Michael
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