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Oops, the free market did it again. That is, made goods cheaper due to competition and innovation. Why we think this model only works in the music industry but not in others is beyond my comprehension, but hey, apparently it should make you think twice before downloading full albums on iTunes.
From Billboard,
The Universal Music Group could rewrite U.S. music pricing when it tests a new frontline pricing structure, which is designed to get single CDs in stores at $10, or below.
Beginning in the second quarter and continuing through most of the year, the company’s Velocity program will test lower CD prices. Single CDs will have the suggested list prices of $10, $9, $8, $7 and $6.
For those of you who like to watch “Big Business” squirm, check out competitor reactions,
On March 16, executives at the other majors were nervous about the UMG move, calling around to accounts for information on the move. Privately, some appeared annoyed by the move. “Why does Universal feel the need to get below $10?” a senior distribution executive at a competing major asked.
I’d ask him, “When was the last time anyone bought a physical CD other than because it wasn’t available for immediate download for less?”
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Tags: Business and Economy, Business of Music, Capitalism, Economics
As long as the artist is still getting their nickel from every CD sold, then the suggested list price doesn’t matter. I’m sure Sony et al can afford to wait another year before upgrading the company furniture.
Besides ‘old’ people (ie over 30) like me still like to get CDs from stores. Having a hard drive crash will every Pink Floyd and Beatles album on it without a hard copy back up would be the end of an otherwise worthy week!
Really. When was the last time a CD sat on a shelf and just … crashed… ?
Oh and have you noticed the amount of new titles available on vinyl these days? Refreshing!