In
this news from C|Net, it seems that in light of a report suggesting the compact disc is heading the way of the Do-Do bird, the world's largest music label conglomerate promised a steep cut in music CD pricing.
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"Music fans will benefit from the price reductions we are announcing today," Jim Urie, president of Universal Music & Video Distribution, said in a statement. "Our new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products. We are confident this pricing approach will drive music fans back into retail stores." On Wednesday, the company also pledged to launch a new advertising campaign and to make price cuts on cassettes. "Top line" cassette tape releases will cost $ 9, under the new pricing model. |
As reported here earlier, the cuts are possibly a result of a study published Tuesday by Forrester Research. The study indicated that the market for CDs will succumb to consumers' increasing preference for downloading music, both legally and otherwise. According to Forrester researchers CD sales peaked in 1999 and will tumble by nearly one third by 2008.
Or maybe there is pressure from the distribution
channels, such as Tower records. Whatever the reason, many have been waiting for
this day as they feel that the music CD is simply not a good value. Will
this be the first of more adjustments to come? How much must the
public save before returning to the record stores, or is it too late?
Source: news.com
