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Music Media

Universal Music To Cut CD Prices 835

phlack writes "CNN Money has an article about Universal Music Group's plans to slash their CD prices to $12.98 SRP, in an effort to combat piracy and bring consumers back into stores. It makes me hope the other giants will follow suit, and wonder if the music industry is finally listening to some of the consumer's complaints."
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Universal Music To Cut CD Prices

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  • It's about time (Score:5, Interesting)

    by mmoncur ( 229199 ) * on Wednesday September 03, 2003 @05:58PM (#6863927) Homepage
    It's about time - CDs have been overpriced for years.

    But when a large segment of the public is going to be comparing $12.98 with the $0.00 filesharing price, I have to wonder if it will have any effect at all.

    I wonder what the artists think of this? This price reduction has to impact their bottom line...
    • Re:It's about time (Score:5, Insightful)

      by nzkoz ( 139612 ) on Wednesday September 03, 2003 @06:13PM (#6864090) Homepage
      It's not all the way. It *is* however a step in the right direction. A lot of people, myself included, would prefer to buy our music legitimatly. Buying a CD is still the easiest way to get high quality, consistant MP3s onto my iPod.

      I'm thinking that the studios will absorb a lot of the difference and artists won't be too affected.
      • Re:It's about time (Score:5, Informative)

        by Magic Thread ( 692357 ) on Wednesday September 03, 2003 @06:21PM (#6864180) Homepage Journal
        A lot of people, myself included, would prefer to buy our music legitimatly.
        Even though you know artists are better off if you don't [downhillbattle.org]?
        • Re:It's about time (Score:5, Insightful)

          by aardvarkjoe ( 156801 ) on Wednesday September 03, 2003 @06:58PM (#6864477)
          Funny. I would consider myself better off with $1.00 for someone buying my CD than I would be with $0.00 for somebody downloading it of Kazaa. (I would also probably be righteously annoyed if that somebody then had the gall to claim that he was helping me out.)
          • Re:It's about time (Score:5, Insightful)

            by canajin56 ( 660655 ) on Wednesday September 03, 2003 @07:30PM (#6864709)

            Yes, but their argument is that if you bankrupt the big 5, the artists will still exist, and can get a better deal with an "indy" label.
            Not saying I agree with them, but that is how they managed to come up with "An artist is better off with $0 than with $1/cd"
            Basically, what it comes down to is "I care enough about you to hurt you...but not enough to hurt me." If they REALLY cared, they would make a sacrifice themselves and NOT LISTEN TO THE MUSIC, rather than ONLY imposing a sacrifice on the artists.

            Optimally, what you would want to do is download the songs, and then mail the artists a nice crisp $2 bill (Or coin, or whatever) along with a letter explaining WHY you are mailing them money. That way you get the music, the record company gets boycotted, AND the band makes money...more money than they would if you bought the CD.

            • Our how about this: CD with 12 tracks... .99$ per track, that's twelve dollars.... or you can get a physical CD, with art work and Cd and case, for 12.99 + tax. yeah. They might actually be getting competitive. Maybe.

            • Optimally, what you would want to do is download the songs, and then mail the artists a nice crisp $2 bill (Or coin, or whatever) along with a letter explaining WHY you are mailing them money. That way you get the music, the record company gets boycotted, AND the band makes money...more money than they would if you bought the CD.

              Make sure you put your real return address on the envelope so the subpoena can find you that much easier.
            • by tjstork ( 137384 ) <todd@bandrowsky.gmail@com> on Thursday September 04, 2003 @01:23AM (#6866418) Homepage Journal
              RIAA does suck but for promotion you absolutely cannot top the work done by record companies. Justin Timberlake can barely hold a note and the only instrument he can probably play is the flesh flute, but, thanks to outstanding marketing the record industry turned him and a few other pseudo singers into a bankable megastars for a time. They put together the posters, the artwork, the image, the stadium tours, the album, the promotional tie ins, everything. An Indy company might appreciate your desire to avoid writing a song that could help go with a "Happy Meal", but, then again, they'd never give you the fat check for doing it.

              Most of us who are developers have no problem selling out our sense of code purity to make deadlines and cash a check, and I suspect that if we each thought that writing even the shareware version of the Office PaperClip could make us a buck, we would.

              So let's at least cut the artist some slack and not be so critical of the music industry that we drive it out of existence. Support the right of the artist to sell out and cash in, and hopefully, they'll make music that recognizes our own god given right to do the same.
            • Re:It's about time (Score:3, Insightful)

              by blincoln ( 592401 )
              Yes, but their argument is that if you bankrupt the big 5, the artists will still exist, and can get a better deal with an "indy" label.

              If that were the case, then no artist who had an independent label contract would try for a major label contract.

              I know musicians on independent labels. They have to work day jobs to support their art. Musicians on major labels generally don't. Indie labels just can't generate the same kind of sales volume.
          • A++++ POSTER WILL READ AGAIN.
          • Re:It's about time (Score:3, Insightful)

            by matt-fu ( 96262 )
            If you were actually a pro musician you wouldn't. When someone downloads your music for $nothing, you aren't getting nothing out of it. You're getting free marketing. Good exposure is priceless.
            • Re:It's about time (Score:3, Insightful)

              by JWhitlock ( 201845 )
              If you were actually a pro musician you wouldn't. When someone downloads your music for $nothing, you aren't getting nothing out of it. You're getting free marketing. Good exposure is priceless.

              I thought the "Good exposure is priceless" argument went out the window with the dot com crash. Even the great unknown musician who's trying to make a name for himself gets paid something by all those bars.

        • Re:It's about time (Score:5, Insightful)

          by abischof ( 255 ) * <alexNO@SPAMspamcop.net> on Wednesday September 03, 2003 @07:11PM (#6864571) Homepage

          A lot of people, myself included, would prefer to buy our music legitimatly.

          ... Even though you know artists are better off if you don't?

          That reminds me of the boss who, in declining to give an employee a raise, says "Well, most of it would have been taken up by taxes anyway."

          Of course, that's a poor excuse for declining a raise -- the employee would have seen some increase, after all. By the same token, even if artists aren't making as much as the labels per-CD, they're still making some amount.

          • by freeweed ( 309734 ) on Wednesday September 03, 2003 @09:02PM (#6865280)
            Oddly enough, many employees think this as well, and I've known more than one person who turned down a small raise because they thought it would actually throw them "into the next tax bracket".

            Up here in the great cold north, higher tax brackets only apply to income ABOVE THAT BRACKET. It's not like the rest of your salary gets taxed higher because you got that $500 raise.

            YMMV in other countries, of course :)
    • Re:It's about time (Score:3, Interesting)

      by fewnorms ( 630720 )
      "I wonder what the artists think of this? This price reduction has to impact their bottom line..."

      Well, I guess they don't give a shit to be blunt. I really don't think this reduction is going to hit them at all. The only people that will be affected by this reduction will be the guys working for the record company, the people that package the CD's, the guys in the record shop that will get less for each CD sold, etc etc. Not the artists themselves. They probably have a contract with the record company s
      • Re:It's about time (Score:5, Interesting)

        by b!arg ( 622192 ) on Wednesday September 03, 2003 @06:42PM (#6864365) Homepage Journal
        I generally can't stand Courtney Love but she had a pretty good speech [salon.com] and quote about this whole thing: "How can pirates steal money from artists when the record companies have already stolen it all?"
    • Entire concept of how music is licensed is broken at this point anyway. CDs being more than $8.00 for most people is too high.

      How many artists see much of anything in the form of royalties? The problem is that we have not just middlemen, but corporate middlemen, companies that have to pay staffs that are not particularly small, as well as satisfy shareholders, pay corporate executive bonuses, and maintain voluminous legal departments, all to distribute this small piece of plastic. How does this work?
    • Re:It's about time (Score:3, Interesting)

      by thogard ( 43403 )
      They are still overpriced. More than 75% of my CD collection cost less than $10. The other 25% cost more than about $20. The $20 was from small bands or stuff that the US versions of the labels decided I didn't want or where the US label decided they didn't like the artist idea of the song order.

      Remember they RIAA doesn't sell music, they sell little plastic things and they are tring to keep a 1950's distribution and production model they can understand and the fact that there are nearly a quart of a mi
    • Re:It's about time (Score:5, Interesting)

      by evil-osm ( 203438 ) on Wednesday September 03, 2003 @06:35PM (#6864311)
      I'm actually rather shocked that CD prices are that high in the US. In Canada CD prices range from ~$14.99 - $21.99 ($21.99 being those rare expensive collectors or double CD's). I thought that those prices were high.

      I'd be *pissed* if I had to pay $26.20 ($18.98 USD) for a crummy CD.

      Dropping the price to $12.98 is still ~$17.90 CAD, which is just brutal.

      Now the question is, will they drop the prices in Canada as well? or have they just decided that they can afford to bring the prices down in the US to reflect the same prices in Canada and still gouge us at the register?
    • by SirSlud ( 67381 ) on Wednesday September 03, 2003 @06:38PM (#6864347) Homepage
      I'm talking about the majority here .. there will always be people who steal, but ....

      In post-capitalist 17th century UK, people couldn't afford bread. Rather than storm the bakeries and steal the bread, they stormed the bakeries and demanded a fair price.

      People are happy to pay a fair price. Thats the very definition of fair value. A value people will pay.

      Between overpriced and free, people choose free. But when they sense that a fair price can be obtained, ie, when the bakers (ie, the RIAA) are actually willing to come to the table and discuss the price, people will choose fair price over free because we require our socialeconomic systems to exist in order to benifit from them.

      If we can't benifit at all, we might as well get for free. When we can benifit, we're smart enough to support that system rather than torpedo it.

      Its the survivalist instinct that makes us choose between not and all and illegally free, and the same instinct that makes us choose fair price over damaging suppliers by aquiring their goods in a way that will put them out of business.
    • Re:It's about time (Score:3, Insightful)

      by fishbowl ( 7759 )
      >CDs have been overpriced for years.

      That's your opinion, which I share of course, but consider this:

      They proved they could get the price point for CD's when they first came out, $15-20 in '82 that I can remember, before that there were too few titles on CD that I cared about, and I was still collecting vinyl in those days.

      So it turned out the market could bear the price.

      So you and I realize the price is exorbitant, but, the price was not out of line with the demand curve.

      The consumer (the millions w
  • Pricey (Score:4, Insightful)

    by Anonymous Coward on Wednesday September 03, 2003 @05:58PM (#6863930)
    So they are finally going to match their competitors (Best Buy, etc.) in CD prices? I still don't understand how those big chain stores, who charge $17.95 for a CD, stay in business. Maybe they should take a survey from their consumers, about what they're actually willing to pay for a CD. $12 is about the tops for me, and it better be darn good for that much money.
    • Re:Pricey (Score:5, Interesting)

      by hankaholic ( 32239 ) on Wednesday September 03, 2003 @07:02PM (#6864508)
      Best Buy can suck it.

      Sometime during the late 90's I purchased a copy of Pink Floyd's "The Wall" album for around $20.

      Over the weekend, I was in Best Buy hell (waiting with a friend while he attempted to buy a 50" DLP HDTV without being forced into buying a $400 power strip...) and wandered over to the CD racks, having since lost the copy of The Wall which I'd bought half a decade ago.

      They wanted... $33.

      Fuck that -- if it were $15, I'd have considered just caving and buying the damned thing again (it's a double album, and a bloody good one at that).

      If CDs were $3-$5 apiece (especially older ones), I'd have a huge legal collection. As it is, I'd rather download the MP3s for songs I bought the right to listen to years ago than to spend $33 for physical media which was doubtlessly produced for less than $3 and which cost me $20 when I legally bought it before.

      This is a start, but come on, folks -- tapes used to be cheaper than this, and they cost much more to produce. I'll cheer when they're under $5 per album, and there are talks of shortening the length of copyright protection.
  • by neogeek ( 455804 ) * on Wednesday September 03, 2003 @05:59PM (#6863934)
    Slash?.. I will wait till they have a homicide of the prices.. 2-3 bucks is just a joke.

  • They are finally listening to us!
  • Yeah Right (Score:4, Informative)

    by taradfong ( 311185 ) * on Wednesday September 03, 2003 @06:01PM (#6863953) Homepage Journal
    How generous. Rather than making 90,000% profit on $0.02 worth of plastic, they're
    taking it in the shorts with a measly 65,000% profit.

    Give me a break. Like $12.98 is going to make me get excited about driving my car to a Brick and Mortar to purchase $0.02 of plastic. This is like Microsoft's strategy of settling lawsuits by selling software at a discount to schools.
    • Re:Yeah Right (Score:5, Interesting)

      by Magic Thread ( 692357 ) on Wednesday September 03, 2003 @06:07PM (#6864031) Homepage Journal
      They don't get $12.98, the stores do. They get a little less than that. I wonder what the new CDs will cost at Cheap-CDs [cheap-cds.com], which sells CDs at near wholesale prices. That should give you a better idea of how much profit the record companies are making.
    • by Fareq ( 688769 ) on Wednesday September 03, 2003 @06:56PM (#6864465)
      Here's the reason.

      Hypothetical: you purchase a popular mainstream CD at a store such as Best Buy.

      You would pay about $12.99-$14.99 for this CD.
      This CD almost certainly retails for either $17.98, $17.99, $18.98, $18.99, or $19.99.

      Incidentally, Best Buy tends to make less that $0.75 per popular CD sold, and frequently less than $0.50 on the ones in their ad. They sell only items they believe they can make huge volume on, with the hopes of drawing you into their store so that they will buy their other products which have sane profit margins.

      MSRP of $12.98 means a Best Buy price around $8.99 -$10.49

      Additionally: cost is not $0.02/CD.

      Cost works something like this:

      Production: $0.03
      Royalties to Musicians: $0.05
      Royalties to Songwriter: $0.08
      Retained by retail store (covers costs like distribution, plus profits) $3.00 - $4.00

      And this does not include the cost of producing the very first CD, generally on the order of $10,000 - $100,000 (varies greatly depending on artist and what all is going on) Amortizing this across all copies sold (lets assume 500,000 -- a pretty good amount for one disc) means that cost is between $0.02 and $0.20

      Note that the numbers for royalty per album sold were real numbers I got from folks inside the music industry, but that they are about a decade old. IIRC, they have increased slightly lately, so it might be $0.10 / $0.16 instead of $0.05 / $0.08.

      Anyhow, the total minimum cost per disc is on the order of
      $3.36 / disc.

      I have left out many of the costs involved in the production, distribution, and marketing of music because I don't have any decent numbers, so I'd just be guessing.

      Even if the other costs are forgotten, $3.36 / disc cost vs. $12.98 MSRP means a profit of:
      286%
      instead of:
      435% for a $17.98 CD

      In short, yes the music industry can afford this cut, and it was a good idea, but IT IS SIGNIFICANT

      Like I said, expect to spend on the order of $8.99 - $10.49 per new CD you buy at the discount stores (from Universal anyway)

      Expect others to follow suit.

      In my opinion the "Best Price for an Album" -- as in, the price the CDs should retail for to maximize record label profits is $9.99.

      This is because this allows price ranges in discount stores to be on the order of $7.00 - $7.99 and I think that this is the highest price that most people will be willing to spend and still buy every CD from most of the artists they like.

      That's just my opinion though. I want to know, really, what do you all think the "Best Price for an Album is" remember, the idea for this number is to maximize RECORD LABEL profit (NOT sell the most music or decrease piracy the most, just make the label the most money)
  • To little to late (Score:5, Interesting)

    by autopr0n ( 534291 ) on Wednesday September 03, 2003 @06:01PM (#6863954) Homepage Journal
    If you ask me, I think the right price for a CD is about $5. $12.98 is a bit much (and why 98? do they think consumers have gotten wise to the whole $n+.99 thing?) It'll eventualy happen.

    • I'm not sure what the right price is for physical media. I have to spend time to get the CD. Once I get it home, I still have to rip it, then get rid of it at the used CD store. (I don't want to waste space storing digitized information.) That takes more time, all of which is a cost. It's a lot easier (and cost effective) for me sit at the PC and listen to the latest tracks from the legit sites, then download the free ones I like.

      Time is worth far more to me than the cost of the CD. It almost doesn't matte

    • Re:To little to late (Score:4, Interesting)

      by homer_ca ( 144738 ) on Wednesday September 03, 2003 @06:23PM (#6864205)
      The article also said cassette prices would drop to $8.98 which is closer to where it should be. Cassettes don't matter much since they're extinct anyway, but it is interesting because they were sold for the same price as vinyl LPs, and just before they disappeared, LPs sold for $8.99-$9.99.

      They've rolled prices back to 1988 which they could afford to do anyway since as a cartel, they can name their price. CDs are still overpriced at $12.98. They originally justified the higher prices by pointing to their new, expensive CD pressing plants, but long ago CDs became cheaper to make than LPs or tapes.
    • by StaticEngine ( 135635 ) on Wednesday September 03, 2003 @07:42PM (#6864793) Homepage
      I guess $5 is a fine price for CDs where the artist is signed to a RIAA label that can afford to punch out 10,000 copies of said CD at pennies per disc. But for independant artists, it's a little different.

      Let's just ignore the $5,000 to $10,000 investment in a home music recording studio, the $400 mastering fees, and just look at the actual CD manufacture. It costs $2.50 a CD to have Discmakers (http://www.discmakers.com) print up 1000 CDs in shiny plastic cases with professional full color 6 panel insert graphics and on CD printing. (And if you want quality CDs in any reasonable amount of time, you don't go with Joes Bargain CD Duplication.) I mail out 100 to radio stations around the country, with press kits, at an additional cost of about $2 per kit. I give away 25 to local DJs in clubs and my indie label gives away another 25 to a distro house, all for promotion. Now I'm down to 850 CDs that can actually be sold, and I'm out $2700.

      Now assuming that I sell all of these myself and get 100% of the profit (I don't, but we'll keep this simple), I now need to sell 540 CDs at your ideal price of $5 each just to break even. This leaves 310 CDs which I can sell for a net profit of $1550.

      $1550 for a years work writing 12 songs, performing them, recording them, mixing them down, and making them available to people on the widely available CD format, which most non-geeks use and enjoy. Can you see why no sane person who wants to eat or pay rent would ever charge so little for a CD?

      And I've never once been contacted about being paid directly for MP3 or other downloadable copies of my songs. No one has ever offered some fair price for a non-CD version of my music. But plenty of people have told me that they downloaded my music off Kazaa or WinMX and thought it was pretty cool, thanks for writing it, but no I won't buy a CD, hey, why are you getting mad at me?

      The RIAA, sure, they scam the artists who sign with them. But the little guys get screwed too.
      • Re:To little to late (Score:3, Interesting)

        by Anonymous Coward
        "But for independant artists, it's a little different."

        It shouldn't be if you're tech savvy. Since you're posting on Slashdot, I would have expected you to be tech savvy? It doesn't sound like you are. 100 Mitsui CD-R Bulk $50. That's only .50 CENTS per CD-R. This is the high quality stuff. You could even go much cheaper than this, and why not?

        You give away 150 CD's? You could easily burn that many CD's with a cheap ($700 range) CD Duplication tower that cranks out about 60 CD-R per hour. Who needs all th
      • Re:To little to late (Score:3, Interesting)

        by fishbowl ( 7759 )
        "Now I'm down to 850 CDs that can actually be sold, and I'm out $2700."

        Don't take this the wrong way, but the reward was the opportunity to make music and have a chance that it would be listened to. Some people seem to have this opportunity handed to them, along with a mansion and a jag :-) Others have to pay and suffer, and still might not actually get the chance to get their music out there. Then when you do play, it's for people who don't really know the difference between one noise bouncing off the
  • by RobertB-DC ( 622190 ) * on Wednesday September 03, 2003 @06:02PM (#6863972) Homepage Journal
    You probably can't convince me that the move by Universal -- a unit of hard-luck French water utility Vivendi [waterindustry.org] -- doesn't have anything to do with Universal's pending aquisition by GE's NBC unit [nytimes.com].

    I figure it's one of two things:

    * Vivendi is looking to spoil the deal with a profit-killing "poison pill". This would be the strategy of former Vivendi chairman Jean-Marie Messier [hinduonnet.com] -- but it's also part of why he's the former chairman.

    * GE has already given Universal marching orders -- this was planned months ago. According to this morning's NPR report [npr.org], Vivendi has been shopping for a buyer for its entertainment units for months, but all previous deals have fallen through. They're likely to do whatever GE says at this point (unless we're back to the first option).

    General Electric isn't in the business of filing baseless lawsuits -- they're in the business of making money. Maybe they'll be the ones to blow the lid off the CD price scam once and for all.
  • by NeoSkandranon ( 515696 ) on Wednesday September 03, 2003 @06:02PM (#6863975)
    Most slashbots are probably familiar with price wars in computer hardware....perhaps we'll see some with regard to CD prices.

    Would be an interesting situation where one could get an artist's release from two different labels, so there would be real competition between them.
    • Would be an interesting situation where one could get an artist's release from two different labels

      None of the major labels' artist contracts would allow this. Most labels either take the copyright on the recording outright as a "work for hire" or (for the most established recording artists) demand an exclusive license for a long term.

  • Simple economics (Score:3, Insightful)

    by zerocool^ ( 112121 ) on Wednesday September 03, 2003 @06:03PM (#6863983) Homepage Journal
    Quality = good, price = high, result = Some people willing to pay.

    Quality = bad, price = high, result = far fewer people willing to pay.

    Quality = bad, price = low, result = Some people willing to pay.

    Quality = good, price = low, result = maximum number of people willing to pay.

    Simple economics. Price of normal goods go up, demand for inferrior goods goes up. Substitute CD's for "normal goods" and MP3's for "inferrior goods".

    I hope this is amazing because they're willing to actually do it, not because they think it's a revolutionary idea.

    ~Will
  • by BurritoWarrior ( 90481 ) on Wednesday September 03, 2003 @06:03PM (#6863986)
    You have already proven you wish to screw your customers at any given moment. You have been hostile to me, you know the guy that paid for your wares, for far too long.

    I left and am not coming back.
  • by rf0 ( 159958 )
    It nice to see a price drop and hope it means that more people go get CD's. I mean I will admit to having a large MP3 collection but I still use CD's as the quality is vastly superior on most of the MP3's you download. On a decent stereo its easy to hear the difference. Now of course if those price cuts are passed on..

    Rus
  • by eddy ( 18759 ) on Wednesday September 03, 2003 @06:04PM (#6863992) Homepage Journal

    Explain why Cassette is still going to be cheaper. No, really. I want to hear it.

    Could it possibly be that CDs are way, way overpriced, even at $13?

    • by Vyce ( 697152 ) on Wednesday September 03, 2003 @06:09PM (#6864043)
      Noone can explain this other than music companies swear CDs are better quality and thus charge more for it than the same music on cassette. Of course, since the cassette is basically dead...they should stop sticking it to us and charge the same price. If anything they should lower the price of CDs according to manufacturing price and make everyone happy. On the other hand, greedy people don't become ungreedy overnight.
    • Four explanations (Score:3, Interesting)

      by yerricde ( 125198 )

      Explain why Cassette is still going to be cheaper.

      Less demand among consumers for cassettes.

      Some CDs have bonus tracks not available on cassette, and the songwriter and recording artist get paid only for the CDs.

      A CD case typically has more space for liner notes than a cassette case does, and the graphic artist gets paid only for the copies included with CDs.

      Some newer CDs come with promotional items such as DVDs containing music videos and glimpses into production.

      • by zakezuke ( 229119 ) on Wednesday September 03, 2003 @06:56PM (#6864461)
        Some CDs have bonus tracks not available on cassette

        How can this be?

        The limit on a CD is there and abouts of 74min.

        There is a limit on cassettes, store bought ones are sold sizes of 60min / 90 min / 120min with a few odd sizes inbetween. It's generally agreed that 120min cassettes are too thin to be reliable, 90 are common place. It's more practical to offer bonus tracks on cassette cause you can fit more stuff on them. I remember that "kiss me kiss me kiss me" from the cure for example included a bonus track that was not included on the cd because there just wasn't room on the CD. I think it was "hot hot hot" as I don't happen to have it handy at the moment.

        The only reason to include bonus tracks on CDs and not cassettes is to encourage you to buy the CD rather then the cassette.

        Artwork and notes CAN be included in a cassette with ease, though there usually is a reduction in size.

        ---

        In computer world, legacy media *ususaly* costs MORE then modern media. While most people still have floppy drives, the release media of choice is still CD, even for data that would fit on a floppy. The demand is less there for less is produced. It would make more sence if cassettes cost more, acording to many they are after all more costly to reproduce. Cassettes are still popular with people who haven't bothered to upgrade their car decks, runners who find the cassettes don't skip, and a few others who haven't bothered to get a CD player. The market I believe to be small, so it makes little sence for them to flood the market with cassettes resulting in a need to lower their price in order to actually sell them.

    • It could be - or it could be that consumers are willing to spend more money for the convenience of random access to music vs. sequential access. When was the last time you saw a cassette player with a "random" feature?

  • by jellisky ( 211018 ) on Wednesday September 03, 2003 @06:06PM (#6864017) Journal
    "We strongly believe that when the prices are dramatically reduced on so many titles, we will drive consumers back to stores and significantly bolster music sales," said Universal Music Chief Executive Doug Morris in the release.

    ------------

    [sarcasm]
    *GASP!* No? Really? Supply and demand works?
    [/sarcasm]

    Too bad some of your audience have decided to kill off a portion of your demand... okay, maybe not too bad.

    Wonder what they'll learn in ECON 201 next year? ;)

    -Jellisky
  • by foo fighter ( 151863 ) on Wednesday September 03, 2003 @06:19PM (#6864150) Homepage
    I've been building my Classical and Jazz collections over the past couple years. (Let's hear it for Van Cliburn playing Tchaikovsky [amazon.com]!Jazz at Massey Hall [amazon.com] anyone?)I buy online, mostly at Amazon.

    It's very rare I pay more than $12 a CD. Even two disc albums rarely cost more than $20.

    When I do pick up a popular CD I haven't paid more than $14 that I can remember. (Can't wait for the new Seal [seal.com] album!)

    I don't know where people are buying their popular music. In brick 'n' mortar stores? In the year 2003?

    I mean, look at Amazon's top sellers list. Most albums are between $12 and $13 already. Shipping is free if you buy $25 worth of stuff. You only pay taxes if you live in Washington or North Dakota. Why would you not buy your music there?

    If you do go to a physical store, Target has many chart topping albums for $10. Last time I browsed the racks there I didn't see anything over $14. No shipping charges, obviously, but state and local sales taxes apply.

    If you have a job I don't know how you can seriously complain about the price of CDs. I really don't get what the story is here.

    [Note: Say what you will, Amazon does everything right when it comes to buying stuff on the web.]
  • heh. (Score:5, Funny)

    by pb ( 1020 ) on Wednesday September 03, 2003 @06:19PM (#6864153)
    If they're lowering the price to match the quality of the music they're releasing these days, then I'd say they'll have to knock off a few more dollars. Here's my suggested pricing scheme:

    • Pay me $5 -- I'll watch Britney on MTV with the mute button on.
    • Pay me $20 -- I'll listen to a track from Metallica's new album.
    • Pay me $1,000 -- I'll listen to Justin Ti...ah fuck, no I won't.
  • by YllabianBitPipe ( 647462 ) on Wednesday September 03, 2003 @06:22PM (#6864197)
    My ideal price for a cd is 7 bucks. That's as high as I'll go. A CD is 20 year old technology. Why haven't lower prices kicked in? The cost of a movie ticket is between 7 - 10 bucks. Have to make the price of a CD competitive with that if you want me to buy more CDs.
    • Why haven't lower prices kicked in?

      Because it's not more profitable. I don't mean to be insulting, but any time I hear (or read) somebody complain about the high price of CDs, I wonder if they have considered what makes up the price of a product. The cost to produce said product certainly plays a role. With regards to the big music labels, they're paying for the costs of the unsuccessful investments with profits from the successful ones, not to mention advertising. This has been rehashed many times, s
  • *slashed* to $13? (Score:3, Insightful)

    by Tom7 ( 102298 ) on Wednesday September 03, 2003 @06:32PM (#6864281) Homepage Journal
    Damn, dude, I have been buying CDs for $10-$13 for years. Are prices really that bad now at the chain record stores?
  • Unless (Score:5, Interesting)

    by snubber1 ( 56537 ) on Wednesday September 03, 2003 @06:37PM (#6864330)
    When I worked for a car dealership (doing computer stuff, not sales) Subaru decided that the prices on accessories were too high. To correct this they lowered the list price.
    Not the cost mind you, but MSRP.
    Now the dealers were force to take a paycut while Subaru kept the same profit margin.

    I would not be suprised to find out that the cut in list price on the cds was much greater than the cost the stores pay.
  • by ljavelin ( 41345 ) on Wednesday September 03, 2003 @06:40PM (#6864359)
    OK, I admit it - I go into music stores once in a while. There's this song I like, and I don't really mind supporting the artist & other people who technically support the artist.

    I've been buying CDs for the past 15 years or so. And before that I bought a whole bunch of LPs.

    And there was always the $18 and the $12. I can say, with confidence, that I've never bought an $18 CD.

    I'd always retract from the $18 CDs. Why does album XYZ deserve $6 a pop? It certainly isn't quality.

    In contrast, I've never had a problem buying a $12 CD. Sometimes I buy a $12 CD on a whim. But $18? Never. No freakin' way. I'll just wait for radio airplay.

    The only exception to my rule would be a multi-CD set. I can see paying $18 for a couple quality CDs.

    And there we have it. From my sample of one person, $18 CDs simply don't sell. On the other hand, people readily buy $12 CDs, and they'll even buy them even if they're not 100% sure if it's something they'd like.

    Universal has learned this. Maybe some others in the industry will learn this too. And do you know what? If the others don't go along, that's fine with me - I just won't be their customer.

    At $18, I won't buy.
    I don't pirate music.
    So I won't listen.
    The only real loss is to the aritst and the label.
    Is there anything wrong with that?

  • So what? (Score:3, Insightful)

    by Sphere1952 ( 231666 ) on Wednesday September 03, 2003 @06:44PM (#6864380) Journal
    They're still a large evil media monopoly.

    I'm sure glad I don't have any interest in the crack they're pushing.
  • Fixed Price?? (Score:3, Insightful)

    by afreniere ( 611999 ) * on Wednesday September 03, 2003 @06:45PM (#6864391) Homepage
    Isn't there something wrong with the idea that every CD in their entire catalog is set at the same price? How can they get away with that? I'm sure that the utility and cost of production of those CDs varies greatly. If the CD market were functioning properly, I doubt they would have the flexibility to dictate prices by fiat.

    -Ansel.

  • by immanis ( 557955 ) <`immanis' `at' `sfgoth.com'> on Wednesday September 03, 2003 @06:46PM (#6864398) Homepage Journal

    The company, whose artists range from U2 to Reba McIntyre, will also cut wholesale prices on cassettes so its MSRP for top-line releases will be $8.98

    Wow! You mean, you can BUY tape archives of CDs in the stores? Here I've been ripping my cds and backing them up to tape like a jerk.

    This should save me LOADS of time.

  • Good start... (Score:3, Insightful)

    by enderwig ( 261458 ) on Wednesday September 03, 2003 @06:47PM (#6864405)
    Well, at least it's a step in the right direction. What they really need to do is offer free downloads of either full length, lower bit (less than 96kbit) MP3's or high quality, 30sec samples of every track in their catalog. Free downloads because good stuff can then be passed to friends. This is the past, present and future of advertising. Nothing works better than a suggestion by a friend or family member. This would be the ultimate way to get "Word of Mouth". What the "common Joe/Jane" want is to sample music. They usually buy stuff they like. The problem is there is so much music out there and the radio stations are all homogenous. People don't know what to buy. Given the cost of even these reduced priced CD's, it's still a tad expensive to experiment.

    Hardcore file traders don't do much to the "content" producers' bottom lines. Some would never spend the money. Others may still buy some CD's from some new bands they found. Basically harcore file traders are zero sum since they provide some advertising (and therefore, new sales), while satisfying some people (loss of sales). Basically balances out.

    So, we have the homogenization of the "free" classic media, an economic downturn, and a lack of major label backed new, innovative, interesting content. File trading is just a scape goat.

    I don't download music as the quality is too low for me. I might buy more if there was a better way to sample music (like http://www.apple.com/music/store).

    I would only buy from iTMS if there were less than 2 tracks on an album that I wanted because AAC quality is too low for me. I would buy if there weren't any CD-singles available. I rip my CD's into FLAC (http://flac.sourceforge.net/)

    I don't download movies as the quality is too low for me. I have, however, sent trailers that I could download to people. At least the movie peole have their heads on straight by allowing people to download their trailers.

    I download anime that is fansubbed and not available in the states, or to demo a series. I have bought entire series ($$$$ of dollars) because I was able to download and watch enough to get into it. I buy them because I want the higher quality video and audio. The fansubbers' subs destroy what can be done by the CC subbing built into set-top DVD players.

    The music, movie, and software industries are idiots for funding the RIAA, MPAA, and BSA, respectively. These *A's are just trying to keep themselves relevant. They are cartels. They should be illegal as they form oligopolies (price fixing, collusion). They are hurting their respective industries by not allowing it to slowly evolve. M/G/S studios can do their own advertising directly to the people and save some $$$$$$$$. All they need is to allow downloading of samples from their catalogs and people will spend their own bandwidth advertising stuff they like.

    Anthony
    • Re:Good start... (Score:3, Informative)

      by Bendebecker ( 633126 )
      "30sec samples of every track in their catalog"
      You'll get a lot of songs with real good openings and after 32-33 secs the songw ill become complete crap.
  • by openbear ( 231388 ) on Wednesday September 03, 2003 @06:56PM (#6864468)
    What ever happened to the $9.99 sale price for new CD releases? I remember back in 1994 I could walk into a Circuit City (on a Friday in Tallahassee, FL) and get a new release for only $9.99 on sale.

    And why is it that back in the 80's I could buy an album on cassette for around $7.99, but today I have to pay $18 for the same ammount of content on a CD? CDs are cheeper to manufacture than cassettes!

    I'm sorry, but Universal is going to have to do better than $12.98 to get my hard earned money.
  • some hard data (Score:5, Interesting)

    by ink_polaroid ( 703765 ) <inkpolaroid@comcasOPENBSDt.net minus bsd> on Wednesday September 03, 2003 @06:59PM (#6864480)

    It is ironic that the top echelon of recording artists could not exist without an industry to support them. Strip away the managers and agents, stylists and coaches, from someone like Justin Timberlake and ask is it possible that he could still make a living from music? Probably not. Ani di Franco, on the other hand, has been making a comfortable income for years without the support of the business she's supposed to be in.

    As Douglas Adams pointed out, many companies aren't in the business you think they're in. Fox News is, despite a million conspiracy theories to the contrary, simply in the business of delivering an audience to its advertisers. The ethics and actions of the "Big 5" corporations who control 90% of record sales make rather more sense if they are viewed, not as separate companies, but as one distributed bank.

    As anyone with any experience of dealing with banks will know, they are monolithically slow to react to changes in the environment, and are populated with highly intelligent, but narrow-minded, solipsists. They're doing now what every one of us was warning them that they should be doing the instant MP3 was rolled out.

    By way of related tangent, here [arancidamoeba.com] is an article by Steve Albini about his experiences with one of the majors, and his advice to anyone thinking of getting involved. At the bottom of the page is a detailed breakdown of a typical deal in which the "industry" made $973,000 and each of the four band members made $4,031.25.

    When the entire system is that fucked, the price of a CD is moot.

  • by sheemwaza ( 570202 ) on Wednesday September 03, 2003 @07:06PM (#6864542) Homepage Journal
    The company, whose artists range from U2 to Reba McIntyre, will also cut wholesale prices on cassettes so its MSRP for top-line releases will be $8.98.

    I still believe that older, somewhat obsolete, formats are a great deal for those on a budget. In fact, I purchased my last copy of Windows on 5.25" floppies. 300 of them. Sure, it took over 3 months to install, but at least I feel I got my dollars worth out of Microsoft. I don't like paying for intangible things like software, but 300 floppies.... thats something you can impress your girlfriend wi...
    --please insert disk 27 for rest of comment--
  • by mabu ( 178417 ) on Wednesday September 03, 2003 @07:17PM (#6864611)
    I like how Universal cites artists like Ella Fitzgerald, Reba McIntyre, U2 and Nirvana as "examples" of their artists.

    Unfortunately, half of those bands are dead and the other half aren't representative of Universal's [universalrecords.com] normally dismal and talentless array of crap music by artists with names like: Boo & Gotti (with their hit single "Ain't In Man"), Big Tymers, Baby Bash "The Smokin' Nephew", Lil' Wayne, Playa, Thug City, Ric-a-che, and Mac 10.

    I think it might be a better PR move if Universal announced they were going to start selling Courvoisier or enrolling their artists in a few English classes.
  • by Sean Clifford ( 322444 ) on Wednesday September 03, 2003 @07:27PM (#6864689) Journal
    Screw Universal and the rest of the RIAA members: unless they're indie buy used CDs and send the artist $2, go to a concert. Musicians don't make dick from CD sales - all production, promotion, legal, administrative, and other costs are charged against the artist. Once *all* of that is cleared, then they get paid a sliver of what's left over after their producer, manager, and entertainment lawyer snack. As an added injury, only in the music industry do artists not retain copyright to their works. Many musicians are now discovering piece-for-hire, you don't retain the copyright to your works. Concerts: this is where artists make their money, their bread and butter - it's certainly not from CD sales. They go on tour, license t-shirts, ball caps, posters, whatever. Make a chunk of concessions, etc. And now the music industry wants a piece of concerts too. Screw 'em. Screw them in both ears - buy indie. If there's non-indie tunes you dig on, visit your local CD Warehouse or hit eBay and buy albums used - then send the artist a couple of bucks.
  • by Art_Vandelai ( 596101 ) on Wednesday September 03, 2003 @07:37PM (#6864757)
    The Globe and Mail had this article to add..

    Universal Music cuts CD Prices [globeandmail.com]

    What's most interesting here is not the price of CD's, (which at $14.95CAD is about $11 US), but that they plan to offer Canadian downloads in October for 99 cents (Canadian) a song!

    It's too early to say whether any of the other labels will participate, and what kind of restrictions are going to be put on the media. Still, it looks like the Canadian industry has taken a much more concilaitory approach to the problem of filesharing, by giving up on the price, and offering additional share of downloaded fees to artists as well - so at least they're trying to adress some of the complaints on this and other forums.

  • by cyberguyd ( 50420 ) on Wednesday September 03, 2003 @07:55PM (#6864881)
    I remember back in the day when LPs (aka vinyl) were common, cool stuff was included by the cool bands. The four KISS solos done in the 70's each had poster that were a part a larger one (I had all four). My "Face Dances" album had a cool poster. A band I bought a couple of LPs by called the Feederz, had full jacket sized double sided sheet with cool anarchistic cartoons and sayings. This just a few of the cool things that would come with LPS.

    I don't see any of this with today's CDs. Of course I do understand the spatial problems with packaging, but the media companies need to give people an incentive to buy the CD rather than a monetary one. Entice the people into buying the CD so they can get a T-shirt, poster, or something else from the artist. Folks are going to choose free over any price if they can get the same thing.
  • Economics 101 (Score:5, Insightful)

    by El ( 94934 ) on Wednesday September 03, 2003 @08:09PM (#6864981)
    Wow, somebody at Universal must have taken an introductory Economics course, learned about supply and demand curves, and realized you don't maximize your profits by continuously raising your price -- especially so on non-essential items like music!
  • Monopolies (Score:5, Insightful)

    by iplayfast ( 166447 ) on Wednesday September 03, 2003 @08:38PM (#6865131)
    What you are seeing is the normal life cycle of a monopoly. When the public gets mad the price goes down, for a while. Then the price goes back up. Usually even higher.

    Consider the price of gas. Remember when you thought to yourself that if it went over a buck a gallon you'd stop driving and take a bus? People get upset, the price goes down, and then starts creeping up again.

    If you have a capital market, ie not a monopoly, then the price stays down. There are what 7 major lables, and they cooperate on the price. It's a monopoly.

    You can claim your tiny victories, but as soon as you buy one CD you've given the victory away. I buy maybe one cd a year (if that). (I don't fileshare either). Basically the whole system has turned me off, I now just play my own music, or listen to the radio.

  • by armaghetto ( 240282 ) on Wednesday September 03, 2003 @08:48PM (#6865195)
    Oh, wait...price wasn't the problem. Shitty music was.

    Note to self:
    Price was the insult added to injury.

It was kinda like stuffing the wrong card in a computer, when you're stickin' those artificial stimulants in your arm. -- Dion, noted computer scientist

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