Music giant plans to drop CD prices

Dom · Sep 4, 2003, 05:30 AM

Universal Music Group on Wednesday said it will slash its wholesale prices and reduce its suggested retail pricing for music CDs to $13, from between $17 and $19. The company, a subsidiary of Vivendi Universal, is home to a number of record labels, including Decca, Deutsche Grammophon, Interscope Geffen A&M Records, Island Def Jam Music Group, and Philips.

"Music fans will benefit from the price reductions we are announcing today," Jim Urie, president of Universal Music & Video Distribution, said in a statement. "Our new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products. We are confident this pricing approach will drive music fans back into retail stores."

The cuts follow the publication Tuesday of a report by Forrester Research that predicted that the market for CDs will succumb to consumers' increasing preference for downloading music--both legally and otherwise. CD sales peaked in 1999 and will tumble by nearly one third by 2008, Forrester researchers wrote.

Consumers should see reduced CD prices as early as October 1, according to UMG.

On Wednesday, the company also pledged to launch a new advertising campaign and to make price cuts on cassettes. "Top line" cassette tape releases will cost $9, under the new pricing model.

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Source: C|net

The_Neon_Cowboy · Sep 4, 2003, 11:48 AM

ALL 101% THANKS TO FILE SHAREING!!!!!

digerati · Sep 4, 2003, 01:22 PM

Finally some results. Thank you Universal.

nForcer · Sep 4, 2003, 04:21 PM

And its about damn time!

Sep 4, 2003, 05:30 AM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Music giant plans to drop CD prices Universal Music Group on Wednesday said it will slash its wholesale prices and reduce its suggested retail pricing for music CDs to $13, from between $17 and $19. The company, a subsidiary of Vivendi Universal, is home to a number of record labels, including Decca, Deutsche Grammophon, Interscope Geffen A&M Records, Island Def Jam Music Group, and Philips. "Music fans will benefit from the price reductions we are announcing today," Jim Urie, president of Universal Music & Video Distribution, said in a statement. "Our new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products. We are confident this pricing approach will drive music fans back into retail stores." The cuts follow the publication Tuesday of a report by Forrester Research that predicted that the market for CDs will succumb to consumers' increasing preference for downloading music--both legally and otherwise. CD sales peaked in 1999 and will tumble by nearly one third by 2008, Forrester researchers wrote. Consumers should see reduced CD prices as early as October 1, according to UMG. On Wednesday, the company also pledged to launch a new advertising campaign and to make price cuts on cassettes. "Top line" cassette tape releases will cost $9, under the new pricing model. ___________________ Source: C\|net

Sep 4, 2003, 11:48 AM	#2
The_Neon_Cowboy HardwareHeaven Extreme Member Join Date: Dec 2002 Location: U.S.A. Posts: 16,009 Rep Power: 92 System Specs	ALL 101% THANKS TO FILE SHAREING!!!!! __________________

Sep 4, 2003, 01:22 PM	#3
digerati Everyones life has worth Join Date: May 2003 Location: My Yellow Bug Posts: 3,779 Rep Power: 0	Finally some results. Thank you Universal.

Sep 4, 2003, 04:21 PM	#4
nForcer Twice the fun! Join Date: Jul 2002 Posts: 1,404 Rep Power: 0	And its about damn time!