Is the recording insustry starting to pull their heads out of their asses? - Tilted Forum Project Discussion Community

laconic1 · 09-03-2003, 07:37 PM

Link to Story

Universal Music Group is lowering wholesale prices on cd's and dropping the suggested retail price to $13.00. It's a step in the right direction

djtestudo · 09-03-2003, 08:01 PM

Considering I buy from Best Buy, where the CDs are that low anyways, I don't care much.

Good for everyone else, though.

YaWhateva · 09-03-2003, 09:43 PM

Quote:

Originally posted by djtestudo
Considering I buy from Best Buy, where the CDs are that low anyways, I don't care much.

Good for everyone else, though.

Maybe it will lower Best Buys prices even further.

yuckasquad · 09-03-2003, 10:02 PM

i usually didnt buy cds at all because they were a little to pricey for me. 13 dollars is a great deal ^^

pornisbadforyou · 09-04-2003, 04:10 PM

this is a huge deal.. i actually work for universal.. and i've been saying we need to lower prices for so long.

this is going to mean $9.99 cds at your regular retailers, possibly cds as low as $5.99 with the big hit album new releases at best buy.

it's going to change EVERYTHING about the business.

BigGov · 09-04-2003, 05:28 PM

It was bound to happen very soon anyway because the iTunes Music Store only charges $10 per album, and since it's coming to PC by Christmas, they'd probably lose a majority of their in store sales if they didn't lower their prices from the outrageously high $20 in some cases.

Hrothgar · 09-05-2003, 12:27 AM

It takes them losing $700 miliion in CD sales to piracy to finally do something instead of ridiculous subpeonas and lawsuits.

CSflim · 09-05-2003, 12:08 PM

Quote:

Originally posted by Hrothgar
It takes them losing $700 miliion in CD sales to piracy to finally do something instead of ridiculous subpeonas and lawsuits.

Yeah previously the attitude was....Shit! All these court cases are costing us boat loads of money! How are we gonna finance it? Thats it! I've got it! I'm a genius! We'll raise prices! Ding-Ding! Win-Win situation!

RoadRage · 09-06-2003, 05:03 AM

I'm with The Register on this one.

From http://www.theregister.com/content/7/32690.html

Universal's CD price cut comedy gets five stars

By Ashlee Vance in Chicago

Posted: 05 Sep 2003 at 18:32 GMT

Step back, take a deep breath, gather some courage and then let out the deepest, abdominal-wrenching gut laugh you've ever experienced. Universal Music Group has lowered CD prices.

The hilarity of the situation has gone unnoticed by most media outlets. They've portrayed Universal as a brave white knight taking a bold stand to try and correct a very wrong situation. File-traders have eroded the music labels' revenue stream.

But a finely-tuned organization such as Universal isn't going to be undone by millions of teenagers. It's taking the daring, some say revolutionary, step of risking precious margins in favor of high volume sales. Maybe if we price the products low enough, we can bring consumers back.

"We are in the middle of a terrible situation where our music is being stolen," Doug Morris, chairman of Universal, told The New York Times. "We need to invigorate the market, and as an industry leader we felt we had to be bold and make a move."

Be bold? Industry leader? That's where the joke begins.

As The Times points out, this is the first CD price cut since the media format came on the scene in the 1980's. Think about that for a minute. New format, volumes low, prices high. Ronald Reagan was president.

Since the 80's, the record labels' have seen CD sales surge. What do we mean by surge? Let's hop over to the Clinton years, when the CD was a well accepted, popular format and see.

In 1993, CD makers shipped 495 million units and brought in $6.5 billion, according to the RIAA (Recording Industry Association of America). By 2000, units had almost doubled to 942.5 million with $13.2 billion in revenue. That's quite a run.

The labels' performance was, no doubt, helped by a "promotional program" the FTC (Federal Trade Commission) likes to call price-fixing. The U.S. government found that the labels were collectively working to keep CD prices high, during these glorious boom years. Where was the white knight Universal then? Oh, right, probably price-fixing.

Laughing yet? If not, here you go.

"What we're trying to show people is that music is a good value, even if you have to pay for it," Zach Horowitz, president of Universal Music, told The New York Times.

Well, yeah, it's a good value when you aren't artificially keeping the prices high. It's also a good value when basic laws of economics are followed. As the supply of CDs sky-rocketed and the cost of the media plummeted, the price would be expected to go down. Two decades and four presidents is a long time to wait for a single price cut on what became a mass market good. CD players certainly went down in cost.

Thank goodness someone at Universal finally went to a macroeconomics course. Give that person a raise for taking night classes at the local community college.

Universal will lower its prices for a CD to $9.09 from $12.02. This means retailers could sell CDs for as low as $10 instead of the $16-$19 currently charged. That's genius! Forget the raise. Somebody give this reincarnation of John Maynard Keynes a medal.

$10 a CD. That's exactly the price music labels did not want retailers to sell their product at during the 1990's, the FTC found. But, come on, the Berlin Wall has fallen, the Soviet empire has collapsed, we even have robotic pet dogs now. Amazing things can happen in twenty-years.

The music label mob might not be the brightest bunch, but they come around eventually.

So if you are one of those pirates, we mean file-traders and not the music labels here, go on out to the store and make things right. Sure the economy has been obliterated over the past three years, but no group is hurting more than the recording industry. These music executives need help, and now they want to help you. Cash in that unemployment check or dip into the last bits of your severance package. CDs are cheap. They are good value. Now that's funny. ®

wwcd101 · 09-07-2003, 10:08 AM

I agree. Let's support this move.

Go! Buy!!!

Thanks for listening.

bulakbol master · 09-07-2003, 12:07 PM

I say we hold out even further and see how low the prices go

jujueye · 09-10-2003, 04:05 PM

Yeah, a nice idea: their junk doesnt sell, so the price must be too high. EXACTLY. Geez, even I can get a spindle of blanks for under 20 bucks, why cant they buy 15 million for even less? I'm tired of paying for some corporate schmuck's corner office!

Bob Biter · 09-10-2003, 04:38 PM

Who cares?

Only the top 40 crap will be available at "low" prices. Imports and indie stuff will still be expensive.

The system does NOT work, unless you're a mainstreamer with a very short attention span.

09-03-2003, 07:37 PM	#1 (permalink)
laconic1 Junkie	Is the recording insustry starting to pull their heads out of their asses? Link to Story Universal Music Group is lowering wholesale prices on cd's and dropping the suggested retail price to $13.00. It's a step in the right direction

09-03-2003, 08:01 PM	#2 (permalink)
djtestudo Baltimoron Location: Beeeeeautiful Bel Air, MD	Considering I buy from Best Buy, where the CDs are that low anyways, I don't care much. Good for everyone else, though. __________________ "Final thought: I just rented Michael Moore's Bowling for Columbine. Frankly, it was the worst sports movie I've ever seen." --Peter Schmuck, The (Baltimore) Sun

09-04-2003, 05:28 PM	#6 (permalink)
BigGov WoW or Class... Location: UWW	It was bound to happen very soon anyway because the iTunes Music Store only charges $10 per album, and since it's coming to PC by Christmas, they'd probably lose a majority of their in store sales if they didn't lower their prices from the outrageously high $20 in some cases. __________________ One day an Englishman, a Scotsman, and an Irishman walked into a pub together. They each bought a pint of Guinness. Just as they were about to enjoy their creamy beverage, three flies landed in each of their pints. The Englishman pushed his beer away in disgust. The Scotsman fished the fly out of his beer and continued drinking it, as if nothing had happened. The Irishman, too, picked the fly out of his drink but then held it out over the beer and yelled "SPIT IT OUT, SPIT IT OUT, YOU BASTARD!"

09-05-2003, 12:27 AM	#7 (permalink)
Hrothgar He's My Girl Location: The Champagne Douche	It takes them losing $700 miliion in CD sales to piracy to finally do something instead of ridiculous subpeonas and lawsuits. __________________ The fortunes of war favored Hrothgar.

09-06-2003, 05:03 AM	#9 (permalink)
RoadRage Stay off the sidewalk! Location: Oklahoma City, OK	I'm with The Register on this one. From http://www.theregister.com/content/7/32690.html Universal's CD price cut comedy gets five stars By Ashlee Vance in Chicago Posted: 05 Sep 2003 at 18:32 GMT Step back, take a deep breath, gather some courage and then let out the deepest, abdominal-wrenching gut laugh you've ever experienced. Universal Music Group has lowered CD prices. The hilarity of the situation has gone unnoticed by most media outlets. They've portrayed Universal as a brave white knight taking a bold stand to try and correct a very wrong situation. File-traders have eroded the music labels' revenue stream. But a finely-tuned organization such as Universal isn't going to be undone by millions of teenagers. It's taking the daring, some say revolutionary, step of risking precious margins in favor of high volume sales. Maybe if we price the products low enough, we can bring consumers back. "We are in the middle of a terrible situation where our music is being stolen," Doug Morris, chairman of Universal, told The New York Times. "We need to invigorate the market, and as an industry leader we felt we had to be bold and make a move." Be bold? Industry leader? That's where the joke begins. As The Times points out, this is the first CD price cut since the media format came on the scene in the 1980's. Think about that for a minute. New format, volumes low, prices high. Ronald Reagan was president. Since the 80's, the record labels' have seen CD sales surge. What do we mean by surge? Let's hop over to the Clinton years, when the CD was a well accepted, popular format and see. In 1993, CD makers shipped 495 million units and brought in $6.5 billion, according to the RIAA (Recording Industry Association of America). By 2000, units had almost doubled to 942.5 million with $13.2 billion in revenue. That's quite a run. The labels' performance was, no doubt, helped by a "promotional program" the FTC (Federal Trade Commission) likes to call price-fixing. The U.S. government found that the labels were collectively working to keep CD prices high, during these glorious boom years. Where was the white knight Universal then? Oh, right, probably price-fixing. Laughing yet? If not, here you go. "What we're trying to show people is that music is a good value, even if you have to pay for it," Zach Horowitz, president of Universal Music, told The New York Times. Well, yeah, it's a good value when you aren't artificially keeping the prices high. It's also a good value when basic laws of economics are followed. As the supply of CDs sky-rocketed and the cost of the media plummeted, the price would be expected to go down. Two decades and four presidents is a long time to wait for a single price cut on what became a mass market good. CD players certainly went down in cost. Thank goodness someone at Universal finally went to a macroeconomics course. Give that person a raise for taking night classes at the local community college. Universal will lower its prices for a CD to $9.09 from $12.02. This means retailers could sell CDs for as low as $10 instead of the $16-$19 currently charged. That's genius! Forget the raise. Somebody give this reincarnation of John Maynard Keynes a medal. $10 a CD. That's exactly the price music labels did not want retailers to sell their product at during the 1990's, the FTC found. But, come on, the Berlin Wall has fallen, the Soviet empire has collapsed, we even have robotic pet dogs now. Amazing things can happen in twenty-years. The music label mob might not be the brightest bunch, but they come around eventually. So if you are one of those pirates, we mean file-traders and not the music labels here, go on out to the store and make things right. Sure the economy has been obliterated over the past three years, but no group is hurting more than the recording industry. These music executives need help, and now they want to help you. Cash in that unemployment check or dip into the last bits of your severance package. CDs are cheap. They are good value. Now that's funny. ® __________________ Join TFP Team SETI 43K workunits complete, 34 members, more of each needed.

09-03-2003, 10:02 PM	#4 (permalink)
yuckasquad Upright Location: LOS ANGELES	i usually didnt buy cds at all because they were a little to pricey for me. 13 dollars is a great deal ^^

09-04-2003, 04:10 PM	#5 (permalink)
pornisbadforyou Crazy Location: virginia	this is a huge deal.. i actually work for universal.. and i've been saying we need to lower prices for so long. this is going to mean $9.99 cds at your regular retailers, possibly cds as low as $5.99 with the big hit album new releases at best buy. it's going to change EVERYTHING about the business.

09-07-2003, 10:08 AM	#10 (permalink)
wwcd101 Insane	I agree. Let's support this move. Go! Buy!!! Thanks for listening.

09-07-2003, 12:07 PM	#11 (permalink)
bulakbol master Upright Location: Philippines	I say we hold out even further and see how low the prices go __________________ "There is a theory that says whenever somebody figures out exactly what the universe is and why it is here, it will immediately vanish and be replaced by something even more unexplainable and bizarre. There is another theory that says this has already happened." -Douglas Adams

09-10-2003, 04:05 PM	#12 (permalink)
jujueye alpaca lunch for the trip Location: in my computer	Yeah, a nice idea: their junk doesnt sell, so the price must be too high. EXACTLY. Geez, even I can get a spindle of blanks for under 20 bucks, why cant they buy 15 million for even less? I'm tired of paying for some corporate schmuck's corner office!

09-10-2003, 04:38 PM	#13 (permalink)
Bob Biter Non-smokers die everyday Location: Montreal	Who cares? Only the top 40 crap will be available at "low" prices. Imports and indie stuff will still be expensive. The system does NOT work, unless you're a mainstreamer with a very short attention span. __________________ A plan is just a list of things that don't happen.