- Posted by Johanna on March 18, 2010 at 5:55 pm
- Category: LinkBlogging
The NY Times is reporting that Universal Music Group will begin widespread testing of a $10 or less price point for CDs, using random samples at major retailers. Why are they willing to do this?
CD sales had doubled at stores involved in a much more limited test of the pricing strategy. [Said the head of distribution,] “the casual fan isn’t willing to pay $15 dollars for a regular CD.”
Wow! You mean if you price things more reasonably, people purchase them instead of copying them? And a lower price raises sales? I’m being sarcastic, but I’m mostly surprised that a big company is willing to act on these colloquial bits of wisdom. It’s unusual for an entertainment conglomerate to change direction, especially in today’s market, where big companies are trying to raise pricing, not drop it.
But as one store chain CEO says, “Lower prices are something that consumers and retailers have been asking for years.” I fervently hope that the experiment works out as well as they anticipate. I know that I’m happy to purchase albums, once I’ve had a chance to sample them and at a reasonable price.
The article continues, “Deluxe versions of albums, which have extras songs or features, will continue to sell at a higher price.” That makes sense. Those who know the artist or want the extras, let them have an alternate purchase. Those who want to sample or just get the basics, give them a choice to do so. That’s what it’s all about — options for the consumer.