Universal Music Does the Unthinkable – Lowers CD Prices

And speaking of licensing issues, what’s up with the big music companies these days?  According to Billboard, Universal Music is hoping that although you haven’t bought a physical CD in years, you will when they lower their CD prices to under $10.  They will begin testing this concept in the 2nd quarter, and not a moment too soon.   The big question will be, of course, whether it isn’t a moment too late.  UMG will also be selling deluxe versions of albums at a higher price point.  Trans World Entertainment began testing the $9.99 price point in over 100 stores, while Wal-Mart has been telling the majors to release shorter albums at lower prices more frequently. The other major labels seem to be balking at the idea of the low prices, but as one “source” said, “The definition of idiocy is doing the same thing over and over and expecting a different result. Things are not going to get better for CD sales unless the price point is addressed. One thing that the Trans World test shows for sure, $10 will drive sales and traffic.”

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