Universal Grows a Brain? [Archive] - ForumsHQ

[ShroudOfStatic]

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NEW YORK (Reuters) - Universal Music Group, the world's largest record company, on Wednesday said it will cut list prices on compact discs by as much as 30 percent in an effort to boost sales that have been stymied by free online music-sharing services such as Kazaa.







Starting in October, Universal, the home to such artists as Mary J. Blige (news), U2 and Elton John (news), will trim its prices on most of its CDs to $12.98 from its current $16.98-$18.98 range of prices.





"Our research shows that the sweet spot is to sell our records below $12.98,' said Universal Music president Zach Horowitz. "We're confident that when we implement this we will get a dramatic and sustained increase."





Historically, large retailers have sold new CDs at considerably less than the so-called "manufacturer suggested retail price."





"We expect this will invigorate the music market in North America," said Doug Morris, the label's chief executive. "This will allow retailers (to sell) for $10 or less if they so choose."





The price cut comes as the company has endured the enormous popularity of free music sharing services, which the labels blame for music piracy.



...(continues here (http://news.yahoo.com/news?tmpl=story2&cid=769&u=/nm/20030903/music_nm/media_universalmusic_dc_4&printer=1) )



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Figured I'd post this after that RIAA thread.. Maybe they're taking a closer look at when they really started losing sales and are realizing just maybe people went to file sharing and alternative methods because the CD prices were going through the roof? You think? That's the reason most of my friends quit buying music so much other than their favorite bands. I had more reasons including having found out they design the quality of the CDs to break down over a not that great ammount of use.. but yeah..



maybe they popped their heads out of their asses. I know I'll start buying CDs again at about 13$ a pop besides 17-19.

[Necrosaro420]

That comments bullshit btw. Last I heard, record sales have been up like 23% or something since kazaa, ect ect came out.

[Xetox]

Even at 10 buck I still think they are over priced...it takes about a buck to make the fucking thing....thats one hell of a profit~

[Rust In Peace]

Originally posted by Xetox

Even at 10 buck I still think they are over priced...it takes about a buck to make the fucking thing....thats one hell of a profit~



Shrug.. you eat pizza and drink pop at restaurants.. the profit on that is like 50-100x and I doubt you bitch about that.. I think $10 is reasonable and this price drop is a good idea, and I'll prolly be more willing to buy more cd's at that price than for $15+.

[ShroudOfStatic]

Originally posted by Necrosaro420

That comments bullshit btw. Last I heard, record sales have been up like 23% or something since kazaa, ect ect came out.



Either way, their whole PIRACY!!!! PIRACY!!!!!! sob story is bullshit that's all i'm really saying

[ShroudOfStatic]

Originally posted by Rust In Peace





Shrug.. you eat pizza and drink pop at restaurants.. the profit on that is like 50-100x and I doubt you bitch about that.. I think $10 is reasonable and this price drop is a good idea, and I'll prolly be more willing to buy more cd's at that price than for $15+.



especially on soda.. at arby's a large soda costs them 2.5 cents for the liquid, less than that for the cup. MAYBE a 25th of a cent for the operation of the pumps and cleaning. throw it up to a full cent maybe average for full operation and cleaning of the whole thing i think i don't remember the small marginal operating cost of those machines.. the average for wages and other store operation combined for a large soda was something like 3 cents? slightly more than the soda itself, but jesus, lids and straws i dont remember ever hearing since they're so dirt cheap.. but they're 1.26 or something? right



(worked at arby's for a year heh)

[Speed]

Fast food places don't make crap. It may cost 3 cents for syrup, 2 cents for cup, etc... but they have to pay operating costs, management, upper management, employees, cleaning, rental/lease/whatever for the building, electricity, water, phone, etc. Business phones are more expensive. I was an assistant manager at Pizza Hut for 2 years. I know the run down of what things cost, I've paid the power/lease/water/etc bills when our regional manager was out for two months, those things are EXPENSIVE. It may not cost much to make the shit, but it costs a lot to get it out to you. They still make enough to keep upper management in Escalades, and the pres/vps/etc.. in mansions, but they make less than most people think. There's a lot of behind-the-scenes people in nationwide companies that need to be paid in order to keep the establishment going.







I'm still going to burn CDs until I can't burn them. After that, I'll be willing to pay $1 to a friend to borrow his/her CD and copy it.

[Xetox]

Everything is overpriced.....I dont buy cd's anymore and even if they do drop the shit down to 10 bucks I still prolly wont buy!



The only Music CD's I buy anymore are collectables...Pink Floyd ect... For music that I only like a few songs of....to kazaa I go :)

[Xetox]

Right on!



Originally posted by Speed





I'm still going to burn CDs until I can't burn them. After that, I'll be willing to pay $1 to a friend to borrow his/her CD and copy it.

[ShroudOfStatic]

Upper management yes, true. I run my own business so I'm well aware of alot of the costs that are bumped up simply because they're businesses.. but still, I guess all that profit does go to building new locations and such.. so i guess.. sorry i forgot to include upper management and such in my post, i've been very well aware of all of that, can't tell me there isn't alot of extra though, no matter what they choose to use it for (there is)