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Universal slashes prices on CDs

Written by Andre Yoskowitz (Google+) @ 22 Mar 2010 14:04 User comments (10)

Universal slashes prices on CDs Universal Music Group (UMG), one of the "Big 4" record labels has announced its latest ploy to increase physical CD sales in the U.S., slashing prices of new releases to under $10.
Dubbing the pricing program "Velocity," UMG hopes that consumers will go out and buy CDs, which will still retail for higher prices than the comparable songs digitally, but with a closer gap.

"We think it will really bring new life into the physical format," adds Universal Music Group Distribution chairman/CEO Jim Urie.

Wholesales prices for new releases have now been dropped to an average of $7.50 from $10.35, and MSRPs for retail prices are dropped to between $6 and $10.

UMG is hoping that the big hit taken to revenue can be made up with an increase in sales volume. Overall CD sales are already down 15 percent year-on-year, with bigger drops expected.

Velocity is set for a Q2 launch and should last through the holiday season.

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10 user comments

122.3.2010 14:35

$5 should be all that has to be paid for concert promotional material.

222.3.2010 16:22

Good move, I'm much more interested in buying CD's under $10. 15+ is way to much.

322.3.2010 18:56

It's a little rough for an industry to get people to pay for a disc when anyone with a burner can get a blank cd for pennies

422.3.2010 20:31

Finally, an intelligent move from the big wigs!
Here's a list of artists under the Universal label:
http://en.wikipedia.org/wiki/List_of_Uni...c_Group_artists

I'm downright excited.

522.3.2010 23:40

One Problem, I still have to get up and go buy it then rip it to my PC then copy it to my MP3 player. I don't think I've done that for years.

623.3.2010 5:36
av_verbal
Inactive

now why would i pay $10 when i can download the 1 only good track on it made by respectable publishers for $0.99 and avoid the crap thrown together by universal to fill the cd?

p.s. the same goes for the other RIAA companies sony, emi, warner.

724.3.2010 13:14

About time!

824.3.2010 14:08

Originally posted by bam431:
One Problem, I still have to get up and go buy it then rip it to my PC then copy it to my MP3 player. I don't think I've done that for years.


If you're downgrading it to MP3, you have no reason to buy cd-quality audio.
Stick with iTunes, or whatever other crap-quality distributor you pay for(!?).
This message has been edited since its posting. Latest edit was made on 24 Mar 2010 @ 14:09

926.3.2010 0:37

Finally someone gets it! Now if we can just get the others on board...


Edited to add that I already get 90% of my music used at the $6-7 range anyway.

This message has been edited since its posting. Latest edit was made on 26 Mar 2010 @ 1:42

107.4.2010 22:15

Yeah, the problem with the music industry now is, there's a whole generation of people that have grown up, and are currently growing up, without ever purchasing any cd's. That $10/wk allowance kids are getting, they're saving and spending it on something else.

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