09-04-2003, 05:32 AM | #1 (permalink) |
Insane
Location: Austin, Texas .. Y'all
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CD Prices to drop up to $6
Article can be found here: http://www.usatoday.com/money/media/...cdprices_x.htm
NEW YORK — In a move that could lower music CD prices across the board, Universal Music Group (UMG), the world's largest music company, will cut the suggested retail price for its top-line CDs to $12.98 from the current $16.98 to $18.98, effective Sept. 29. The cut by the company, which has contracts with artists such as Eminem, 50 Cent, Mary J. Blige and Shania Twain, is an effort to revive sales, which have dropped 30% industrywide over the past three years. U.S. sales in 2002 dropped 8% to $12.6 billion, according to the Recording Industry Association of America (RIAA). "We expect this will invigorate the music market in North America," said Doug Morris, UMG chairman and CEO. "This will allow retailers (to sell) for $10 or less if they so choose." The wholesale price on most CDs will drop to $9.09 from $12.02, with some top artists, such as Eminem, at $10.10. UMG expects retailers, who set final prices, to start selling CDs for about $12 on Oct. 1 and hopes they will go as low as $10. "We've tracked this carefully. There's no question: The consumer responds when we get to that sweet spot of $11 to $12 per CD," says Jim Urie, president of Universal Music & Video Distribution. Executives at the other four major music companies — Warner, EMI, BMG and Sony — declined to comment. In addition to the price cuts, UMG will replace ad subsidies for retailers with more ads for its own products to lure music fans back into stores. The company also is cutting the suggested retail for cassettes to $8.98. The price cuts are also the music industry's latest attempt to slow illegal file sharing by consumers. The RIAA has served more than 1,300 subpoenas to identify traders and expects to file lawsuits as early as this week. Record companies are losing $700 million a year to piracy, says Josh Bernoff, media and entertainment analyst at Forrester Research. Forrester released a study Tuesday predicting an even bigger drop in CD sales as Internet music file-sharing keeps gaining ground on the flagging CD, CNN.com said. "It's disgraceful that people are losing their jobs and stores are closing," Morris says. "As the leader in the industry, we feel we should pave the way with a plan that, if it's successful, will become permanent." It remains to be seen whether the cuts will be enough to persuade young consumers to buy CDs. Discounters such as Wal-Mart already discount CDs to about $13. Michael Goodman, an analyst with Yankee Group, warned that if retailers refuse to pass on their full savings to consumers, "They could exacerbate a bad situation." And Bernoff warns that lowering prices will not solve the long-term problem of file sharing: "This price reduction may stem the tide of losses in the short term. But in the long run, the only solution is to provide music online for people who want music online. That's the future, not CDs." ----------------------------------------------------------------------- Excellent. It's about time.... |
09-04-2003, 06:10 AM | #4 (permalink) |
Army of Me
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The plan sounds good, if this price drop applied to import CD's as well i'd have a box full of new CD's by Xmas.. Yes troit it is easy to download new music, but you do realize.. it's stealing right? It's just as easy to go to a store and listen at a listening station to a new cd first, then buy it... or even go to amazon or someplace online and listen to song samples then purchase it. File sharing is popular because it appeals to people's nature to get something for nothing with minimal effort. Still doesnt mean it's ok to take something for free, just because you can.
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09-04-2003, 07:05 AM | #7 (permalink) |
Tilted Cat Head
Administrator
Location: Manhattan, NY
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hmmph... when the movie costs US$19.99 and the soundtrack costs almost the same and there's no picture... people figure something is up.
bah.... i still have to see my money from the CD class action suit
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09-04-2003, 07:16 AM | #8 (permalink) |
Psycho
Location: Tiger I Turret
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When are they gonna realize that people are too lazy to drive to best buy or Wall Mart, and that they want to have new music now! In their homes.
RIAA had their chance to jump on the MP3 bandwagon a long time ago. If they just had a site that charges people 50 cents a song or something they would be rolling in cash. They could have embraced Napster and Kazaa but instead they decided to fight them which was a huge mistake. Now they think that sueing people is the way to do it. |
09-04-2003, 08:02 AM | #10 (permalink) |
The sky calls to us ...
Super Moderator
Location: CT
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Now if they would just give a fair amount to the artists who make the music, I'd be satisfied. I hope that they don't take much out of the miniscule amount that they give artists for each CD sale.
This is a great step in the right direction. I'll start buying CD's again. |
09-04-2003, 08:12 AM | #11 (permalink) |
Addict
Location: Kingston,Ontario
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My CD player in my car only plays CDs. I have converted all my music to MP3s for the boat and the house, but the original CDs end up in the car.
So, I still buy CDs. I like the way they come complete and in sequence and the little album covers show up in the media player after they are converted to MP3s. Cheap CDs are good. |
09-04-2003, 08:17 AM | #12 (permalink) |
Psycho
Location: cali
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hell, if they were cheap. i would buy them too. the silver stamped cd's are way better than burnt ones, tho i would still burn a copy for the car, leaving the original at home.
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09-04-2003, 08:56 AM | #15 (permalink) |
Fucking Hostile
Location: Springford, ON, Canada
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I am pleased. I only hope they are not cutting into the already ridiculously low royalties paid out to the artist.
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Get off your fuckin cross. We need the fuckin space to nail the next fool martyr. |
09-04-2003, 08:58 AM | #16 (permalink) |
Modern Man
Location: West Michigan
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Good! Its about time. I still purchase CD's and always will. But I don't like being punished with their prices.
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09-04-2003, 02:01 PM | #21 (permalink) |
Junkie
Location: Right here
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Where are the $6 CDs--I feel cheated?
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"The theory of a free press is that truth will emerge from free discussion, not that it will be presented perfectly and instantly in any one account." -- Walter Lippmann "You measure democracy by the freedom it gives its dissidents, not the freedom it gives its assimilated conformists." -- Abbie Hoffman |
09-04-2003, 02:55 PM | #23 (permalink) |
Ssssssssss
Location: Ontario
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So is this going to affect the cost of CD's in Canada? Lowest price I've seen in years is maybe 15.99-16.99 for the new releases.
If the CD isn't a new release or the band doesn't have widespread popularity, I can expect the cost of the CD to be anywhere from 19.99 up to 27.99!!! |
09-04-2003, 03:33 PM | #24 (permalink) | |
Who knows what evil lurks in the hearts of men?
Location: right here of course
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Quote:
I personally only use lossless codecs - normally Flac now, but still have many GBs of ape files - to encode music that will be archived here. And I always prefer having a clean copy of the master material rather than a frequently shitty encoding job done in a low bitrate (anything below 192 bitrate in my book, or damn near any CBR MP3 file) or done through an atrocity like Xing software. |
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09-05-2003, 06:53 AM | #25 (permalink) | |
Fucking Hostile
Location: Springford, ON, Canada
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An update for my fellow Canucks:
Quote:
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Get off your fuckin cross. We need the fuckin space to nail the next fool martyr. |
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09-05-2003, 07:12 AM | #26 (permalink) |
Upright
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I dont know about other areas of the country but here in Wisconsin, behind the Cheddar Curtain I can buy just about any CD I want for under $14 with alot of the new realeases being available under$11 for the first week of release. i hope this price drop will get my everyday prices under $10,
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09-05-2003, 07:43 AM | #28 (permalink) |
Crazy
Location: Houston, Texas
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Why doesn't the record association sell cds in MP3 format? I mean now days most people have some form of MP3 player. Hell most DVD players will play MP3's. Plus your PC will always play MP3's. By selling discs with MP3's they could give the consumer more songs with each disc, maybe even combining similar artists on one disc. I don't think people would be so hesitant to drop $15 or $20 on a CD if it had 25-30 songs instead of 10-15.
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09-05-2003, 10:28 AM | #33 (permalink) |
Fledgling Dead Head
Location: Clarkson U.
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I like to have albums. An album tends to be a "statement" or "era" of a band. Its nice to hear a certin sound all the way through the cd. Plus, I like having the jackets. In the end, I never download for those reasons, aswell as the fact that p2p networks give hackers a wicked easy backdoor into your computer. I cant tell you how many people I kno who have had their computer fucked up by a virus on Kazzaa
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09-05-2003, 12:47 PM | #35 (permalink) |
BFG Builder
Location: University of Maryland
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I enjoy having the albums as well. $10 is still a bit much, but far better than what they were charging previously. I'll have to see what artists this company produces, and decide if any of them are worth buying.
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If ignorance is bliss, you must be having an orgasm. |
09-05-2003, 03:08 PM | #36 (permalink) |
Psycho
Location: Somewhere between the Havens and the Earth
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sweet, in my opinion more people wouldnt mind buying cds if they werent so damn expensive. i know i would cuz it would save me time but then again you couldnt make mixed tapes either so i guess it might work and it might not but its worth a shot and getting 6 or 12 bucks is alot better than not gettin the 18 or 20 . at least they makin some money
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09-05-2003, 07:19 PM | #38 (permalink) |
Tired
Location: Florida
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I'll definately buy now, $17+ for a CD that has about 4 good songs is just stupid in my opinion. $6 isn't that much of a setback. :P
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09-05-2003, 07:39 PM | #39 (permalink) |
lost and found
Location: Berkeley
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I have to laugh. They're cutting the MSRP, so the retailer takes the hit while the label goes on like usual.
And at the same time, Morris is concerned about retail employees getting fired and stores closing. How the heck will this help? They'll get more sales--but make the same amount of money. Guess who benefits, besides the consumer. This boosts label profits without any additional work and doesn't do anything about the declining retail music industry. Brilliantly misrepresented by the label.
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drop, prices |
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