Universal cuts CD prices 30%

talk random
1

This is what im talking about. This should have been done years ago. $12 is still steep for a CD that costs less than 30 cents to stamp package and ship but at least universal has the right idea.

Reward customers for buying your products.

Universal cuts CD prices

Music company lowers prices up to 30% in attempt to win back customers downloading songs.
September 4, 2003: 11:06 AM EDT

NEW YORK (CNN) - Hoping to win back customers lost to free music downloads, one record company is slashing prices.

Universal Music Group said Wednesday it is cutting the suggested retail price of its compact discs to $12.98 from current prices ranging from $16.98 to $18.98.

The change is effective Oct. 1.

Universal sells nearly 30 percent of all albums in the United States, according to the company. Artists in its catalog include Eminem, Dr Dre, Sting, Elton John and Ashanti.

The price cut also includes its catalog of older albums, with music by The Who, Jimi Hendrix, Ella Fitzgerald and Nirvana.

Universal Music Group is the world’s and the nation’s largest music company, with almost as much U.S. market share as No. 2 Warner Music and No. 3 BMG combined. It is a unit of French media conglomerate Vivendi Universal (V: Research, Estimates) but is not one of the Vivendi Universal entertainment assets included in the recently announced purchase by General Electric Co. (GE: Research, Estimates)

Spokesmen at Warner and BMG, as well as at Sony Music and EMI Group, the other major recording companies, had no immediate comment Thursday. Warner Music is a subsidiary of AOL Time Warner (AOL: up $0.01 to $16.77, Research, Estimates), the parent company of CNN/Money.

The Wall Street Journal reported that the move shocked executives at competitors, who are expected to respond with price cuts of their own. “They are basically forever changing the record business today,” one unnamed executive at a competing label said. “It’s a massively bold move; it’s the kind of move we as an industry need to be making.”

Consumers have complained about the price of CDs, and the availability of free or cheap music downloads on the Internet has been cutting into industry sales for several years.

The IFPI, the international trade group, estimates that pirated music now costs the recording industry $4.6 billion annually, not including the value of CD’s burned by individuals

2

Well it is a step in the right direction. I think they may finally be getting the point. =)

Cheers!
-Niann

3

They should have done that years ago, you’re exactly right. I can honestly say though, that if they do drop prices that I’ll gradually go back to buying cd’s. I’m getting too lazy to keep downloading stuff. Plus I don’t want one of those $100,000 a song lawsuits.

On another note, Niann, I’ll pay you to change your footer.

4

WOOOOOOOOOOOOOOT!!!
that’s great but i am still going to download everything. LoL

5

explain to me w00t, I get all the geek talk like l33t haxorz and other nonsense, but the significance of the w00t eludes me.

6

excellent :slight_smile:

7

*Originally posted by eilsoe *
**excellent :slight_smile: **
yeah awligon, eilsoe pretty much got it in one :wink:

8

*Originally posted by awligon *
** On another note, Niann, I’ll pay you to change your footer. **

You don’t like it?

Cheers!
-Niann

9

so why not taps fingers together rhythmically and says ‘excellent’ in a devious tone. Why w00t?

10

*Originally posted by Niann *
**You don’t like it?

Cheers!
-Niann **

I do, but as I’m typing or reading, it makes my brain smack around in my head going back and forth like that. :beam:

11

Doh! I will have to see what I can do about that. =)

Cheers!
-Niann

12

*Originally posted by awligon *
so why not taps fingers together rhythmically and says ‘excellent’ in a devious tone.
because that wouldn’t be l337 :wink:

13

Metallica and Godsmack … $9 for their newest CDs when they first came out. I’ve got NO problems paying that for a CD. I think everyone should run “specials” like that. It’ll boost first week record sales for sure

14

it’s a good thing to close the doors, but I think the horse has already left the barn, if you know what I mean…

Rev

15

yup

off-topic: why twelve ?

16

That’s great news Fester, thanks for the update.

Rev - I agree pretty much with what you have said, but I do belive that there is a possibilty of sales going back up to where they once where (they really havent fallen off THAT much) within a year or so if all companies follow suit.

ON a somewhat related note -

Launch.com reports that Eminem and his protege, Obie Trice, have come up with a masterful marketing plan for Trice’s forthcoming debut, ‘Cheers’, which will be released on September 23rd. The duo have decided to include golden ticket inserts into three of the first 500,000 copies of Trice’s debut CD. The three lucky fans who purchase the CDs with the golden tickets will get an all expenses paid trip to Detroit to hang in the studio with Eminem while he works on his new album.

I think that is an amazing idea - kind of like the ol’ Charlie and the Chocolate Factory :slight_smile:

17

*Originally posted by mlkdesign *
**yup

off-topic: why twelve ? **

because it’s

432×335 13 KB

just like my title sings…

:wink:

Rev

18

why 12? It’s certianly a count-down of some sorts - I think anyway. It was just 13 yesterday … or I could be blowing smoke up all your butts

19

If CD companies begin to lower their prices then I may return to buying CDs again. Its been so long since I even thought about buying one… It would be nice to be able to fill up my CD racks again… :slight_smile: Definatly a step in the right direction. :thumb: