March 25, 2010
Is it too late to "save" the CD?
As compact disc sales continue to plummet, and lose the battle against digital downloads, the power house Universal Music Group has decided to try a drastic measure – cutting CD prices.
Prices will now be within the suggested listing price of $6 to $10 for a single disc. What this means is that they can wholesale for a lower price, such as a disc with a list price of $10 costing $7.50, $9 for $6.50, etc… With this pricing, UMG is also planning to increase their offerings of deluxe albums to get fans to spend a little more money for all of the extras offered on those discs. For a complete list of UMG artists you can soon buy discounted, click here.
Will it work? Time will tell. People are becoming much more comfortable with receiving their music with just a click of a button. Once it was the thrill to go and have a “hard copy” of the music in your hands, which is not such a big thing to a lot of people today. MP3 players and iPods are all that matter to many consumers and, if you search a little, those “bonus extras” can be found on the internet and downloaded.
The truth, however, is that with the CD platform beginning to go the way of vinyl the companies have to try something. Whether this is the answer or not remains to be seen.