Universal Slashing Wholesale CD Prices by 30%

Discussion in 'Music' started by Lee Scoggins, Sep 3, 2003.

  1. Lee Scoggins

    Lee Scoggins Producer

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    This is good news but indicates some real turmoil in the music business. I wonder how hirez may play into this...as well as imusic and other new distribution.

    From the Wall Street Journal web site:

     
  2. Lee Scoggins

    Lee Scoggins Producer

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  3. Lee Scoggins

    Lee Scoggins Producer

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  4. Marc Colella

    Marc Colella Cinematographer

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    We finally see a real attempt by a record label to revive sales, although I'm not sure 30% is enough.

    Wonder if they're going to drop the prices of SACDs and DVD-A titles. If not, hi-rez will be even less appealing to consumers in comparison.
     
  5. Jeff Ulmer

    Jeff Ulmer Producer

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    I wouldn't expect that 30% to see its way to retail, except perhaps the online vendors. Storefronts still have to contend with increasing leasing costs, increased freight costs, increased minimum wage staffing costs, and increased everything else costs. What they may save on product costs will quickly be eaten up by the other costs of doing business.
     
  6. BrianB

    BrianB Producer

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    They're "Reccommending" that the RRPs drop to $12.99 from $18.99. Who currently regularly pays $18.99 for a CD?
     
  7. Thomas Newton

    Thomas Newton Screenwriter

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  8. Brian Perry

    Brian Perry Cinematographer

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  9. Tony-B

    Tony-B Producer

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    [​IMG] to Universal! Finally, someone gets the picture!
     
  10. Lee Scoggins

    Lee Scoggins Producer

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  11. John Watson

    John Watson Screenwriter

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    There is an old economics law : Prices are sticky on the downward side.

    BTW, what notable artists and acts or labels are on Universal (whatever Universal is)?

    That might be key to seeing a rise in sales, which would drive the other labels to follow suit.

    As to economics fundamentals, will the price drop affect the price-volume equation in favor of an improved profit?

    Anyway, its good to see a label try.
     
  12. Chet_F

    Chet_F Supporting Actor

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    Excellent news as I very very rarely buy any CD over $10, whether new or used. I especially like it when Target has the 7.99 to 9.99 end cap for new artists. 8.99 to 9.99 for new CDs I would buy. [​IMG] But this 14.99 crap is for the birds. Especially when you find out that there's only 1 good song on the CD!! [​IMG]
     
  13. Lee Scoggins

    Lee Scoggins Producer

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    This is a nice point of critique of labels from Fox News:

     
  14. Marc Colella

    Marc Colella Cinematographer

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  15. Seth--L

    Seth--L Screenwriter

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  16. Malcolm R

    Malcolm R Executive Producer

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    Some mall-based retailers, such as FYE, already routinely sell CD's for amounts above the SRP. I don't see this stopping them from continuing the same practice.

    I also find it somewhat laughable that they're dropping the wholesale price by $2-3, yet expect retailers to drop their retail price by $6. I expect the most we'll see of this is about a $2 drop at retail, probably to around $16 in the mall stores (if they drop at all).
     
  17. MickeS

    MickeS Producer

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    This is a good idea, if CD's are priced below $10 I would definitely buy more of them. Problem is, none of the artists I like are on Universal. [​IMG]

    Is this related to GE buying Universal, by the way?
     
  18. Rhett_Y

    Rhett_Y Screenwriter

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    Heck I haven't paid more then 13.99 for a cd in god knows how long. CC/BB/TAR always seem to have deals on cds. Like others have mentioned, 7.99-13.99 is the norm for me.....

    Good news...lets hope we end up seeing it!

    R~
     
  19. LarryDavenport

    LarryDavenport Cinematographer

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    I doubt Tower will lower the prices. It's a suggested price after all.
     
  20. Lee Scoggins

    Lee Scoggins Producer

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