Universal to slash CD prices in US

Posted by: throbnorth on 04 September 2003

http://www.theregister.co.uk/content/7/32658.html

for the full story.

At last, a faintish waft of common sense.
I thought the -

'But equally it's about trying to win back buyers who'd rather spend money on a DVD or computer game, which are increasingly being perceived by consumers as offering better value for money than CDs do.'

- bit interesting, because it exactly mirrors my [apparently] subconscious spending patterns. I used to buy CD's obsessively [not in Lees quantities of course, but still 2 or 3 a week - taking risks here and there, splashing out in a regular fashion on all those artists I keep an eye on etc. etc.] but this is strangely no longer the case. I've just realised that the 200+ DVD's that I seem to have accumulated fairly recently have probably replaced that habit, which has actually never occured to me before. They are [compared to CD's ] rather good value. I often flit around Play, Splash CD-Wow and the usual suspects grabbing all these poor little £5-£10 DVD classics which it seems somehow uncharitable not to buy, as mostly they are below the price of a heavily discounted CD [i.e £8.99]. Come to that, I don't even squalk when looking at DVD's in HMV as I do when faced with their £15+ CD's.

As the UK's CD consumption, in spite of the doom & gloom reports of the BPA, has actually been increasing, I doubt if we'll see a similar reduction here for a little while, but extensive online imports may eventually have an effect. A US $13 'store price' [£8.22] will mean that online retailers will have to shave a bit more off, and Amazon.com will be even more tempting for regular purchases than it is at present.

The prospect of a new full price CD being around £7.50 [the price of that first landmark Dire Straights album incidentally, which was issued when CD's had to bear the heavy and perhaps justifiable cost of R&D, pressing plants etc.], would undoubtedly make the market explode, and perhaps enable the industry to begin investing in talent long term the way they used to. Dance music is apparently on the wane, and that fortuitously, might help.

If this was coupled with a more realistic attitude to downloading [although I expect that Microsoft DRM will for a while hobble attempts in this area for the vast majority of PC users compared to the lite-touch that Apple have introduced - 30p a track would be an ideal splurg-y sort of amount] then the industry's problems would be sorted.

If companies could realise that a two track CD single should actually be thought of as a loss leader [99p - £1.25 seems about right?], bliss might even reign, we could have a thriving music scene, charts that mean something and a return to father/son Thursday night TOPTP arguments.

Interesting times ahead, nevertheless.

throb
Posted on: 05 September 2003 by Sigmund
Here's what this means according to a post on audioasylum.com from a newspaper reporter: "As part of the price cut, Universal is demanding that record stores devote 24 percent of its bin space to Universal products. Uni also wants stores to devote a set percentage of advertising space to its products. This is unheard of. If the stores, and we're primarily talking independently owned stores, don't agree then they don't get the discount. And neither do we (of course, that only applies to people who shop at locally-owned record stores, which is always a good idea).
The Coalition of Independent Music Stores (CIMS) is currently battling/negotiating with Universal over its outrageous demands.
Posted on: 05 September 2003 by ErikL
Does Universal have any decent artists to make any of this even matter?
Posted on: 06 September 2003 by throbnorth
And there was me thinking it was a burst of reason & altruism. Might have known .... Don't think they'd get away with that in the UK, but then a price cut here is unlikely.

As for artists, as Universal have Island, Decca, Deutsche Gramophon, Polydor, Motown, Verve, Interscope, Mercury and a few dozen other labels under their belt, I expect they can rustle up a few decent ones!

throb
Posted on: 06 September 2003 by Rasher
I read this story in USA Today. It was in the same paper that reported that nicked Kazaa users/sharers are facing trial, but today I saw this on their web site while searching for the original story. Something is happening certainly.
I always used to buy CD's when in the USA because they seemed cheap, but after having got into the habit of CD-Wow and Play.com, they now seem expensive. Even Walmart's CD's are $12-15, and that is more than I would pay over here (UK) in my fave shops. I came back this week for the first time ever without buying a single CD.
Posted on: 08 September 2003 by Peter Stockwell
My newspaper had an article about the death of the CD and oulined a number of reasons for the waning sales. It's actually, of course, waning profits. The numbers of CDs sold is increasing, in France at least, and music is as popular as ever, if not more so. But the unit price for a CD that people will pay is decreasing. The other factor that is having a huge impact on CD sales is broadband internet access. I discovered this weekend that you can not only download all the songs from that new CD you wanted to hear but you can also download the scans of the cover and the title side of the CD!

I was amused to see that you could download everything you needed to make a facsimile of the latest Phil Collins album, which is one of the first I'd seen with the Copy Protection. Of course why anybody would want to download that recording reamins a mystery.

When a recording made in the mid 80s would cost more than 20€ from www.amazon.fr the temptation to download is strong.

Peter
Posted on: 08 September 2003 by Rasher
Yeah Peter, that is the point isn't it. I wanted to get the first two Roxy Music albums, but can't bring myself to pay full price when I know they are barely 45 minutes. Six quid at the local discount store is more like it. 70 minutes for a current CD is a different matter.
Posted on: 08 September 2003 by Peter Stockwell
45 minutes is not so bad, it's the barely 30 minute albums that get my goat. At least a lot of reissues have bonus alternate takes or extra tracks (The 'Free' remasters for instance and they were only priced at c. 11€). You could probably get vinyl copies of the Roxy albums for reasonable cash.

Peter
Posted on: 09 September 2003 by domfjbrown
Albums are tooooo long these days - I get bored pretty quickly at anything much longer than 55 minutes - even if it's a greatest hits thing.

The only long CDs I can put up with really these days are psy-trance ones - and that's 'cos each track on those is 7-8 minutes.

For example, Songs for the deaf by QOTSA - does it REALLY need to be that long? I ended up giving up about 2/3 through - just too long!

When the music's over turn out the lights