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esettle0

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Reflections of your love have come to wither

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Mar 18 10 11:15 AM

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Becomes First of the Big Four to Go After the Theoretical “Sweet Spot”

March 18, 2010

UMG announced this morning that it will test a program featuring a $10 MSRP on a broad selection of top-line CDs in the U.S. The test will begin in the second quarter.


The music group, which has been releasing albums in more than one version of late, notably including Lady Gaga’s The Fame and The Fame Monster, says it will also offer companion versions of these lower-priced CDs containing additional content for dedicated fans at a higher price point.

“After extensive consumer research and conversations with our retail partners, we found that there is a large segment of consumers who want to purchase CDs, but have been holding back due to a difficult economy and the value proposition of physical media,” said UMGD President/CEO Jim Urie. “This test will seek to address these issues by offering a greater selection at sharper pricing, creating an even more compelling physical entertainment option for music consumers.”

In his column posted Feb. 26, our in-house pundit I.B. Bad described one retailer’s testing of the $10 price point:

“The CD has shown signs of life since Trans World began an experiment six months ago by dropping the price on all physical product in some of its stores to $10,” I.B. noted. “The result: one major distributor has seen an uplift of more than 100% in those outlets. This eye-catching result has given added cache to the theory that it’s possible to reinvigorate consumers by locating the ‘sweet spot’ price point.

“Retail mavens believe that if any or all of the Big Four distributors react to these results by lowering the wholesale price of CDs, they’ll be forced to compensate for the resulting razor-thin margins. Specifically, they expect to see the current trend of albums containing fewer tracks to intensify.”

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Vincent

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#2 [url]

Mar 18 10 11:37 AM

Yeah, this is a great idea. FYE has made all their CDs $9.99 as the article mentioned (TransWorld) and I went in there and tore that store up on three separate occasions. And with their VIP card, I get CDs for $8.99.


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mcfan

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#3 [url]

Mar 18 10 11:43 AM

Very nice! Hopefully this inspires people to buy more music legally and especialy albums.
Thanks for posting this Erica. It's always a pleasure to have you with us

 

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CoCoLambMC

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#5 [url]

Mar 18 10 3:18 PM

I don't get it, aren't most CDs already 9.99? Especially at places like Target and Wal-mart.... Though their selections are small. Memoirs on the other hand.... that thing was way over priced!


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Vincent

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Mar 18 10 6:38 PM

CoCoLambMC wrote:
I don't get it, aren't most CDs already 9.99? Especially at places like Target and Wal-mart.... Though their selections are small. Memoirs on the other hand.... that thing was way over priced!

Not really. I paid I think $12-14 for Sade's album at Walmart.


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Colson

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Mar 19 10 7:17 AM

$10 bucks is too much.

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kittykow105

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Mar 19 10 7:39 AM

Whenever I go to Target or Walmart I look for Mariah's cd. It's always being sold for like 14 bucks. That's always been one of my issues was that IDJ never made sure it was being sold for a cheaper price. It was 9.99 the first week, and then instead of it being 11.99 like most cds, it's been like 14.88.

And as someone pointed out before, 12 years too late.. and yes... 10 dollars still may be too much. 9 dollars will DEF. catch people's attention tho. Still though, I would DEF be more inclined to buy cds now knowing they're 10 dollars.

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esettle0

Posts: 21,128 Reflections of your love have come to wither

#10 [url]

Mar 19 10 8:18 AM

CoCoLambMC wrote:
I don't get it, aren't most CDs already 9.99? Especially at places like Target and Wal-mart....

No. 

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Mariah10Carey88

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#11 [url]

Mar 20 10 8:24 PM

i know in fye and mall shops they are ridiculously priced, like 16 dollars. target and walmart usually have them between 8 and 12.

image 

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hottiecasanova

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Mar 21 10 12:39 AM

kittykow105 wrote:
Whenever I go to Target or Walmart I look for Mariah's cd. It's always being sold for like 14 bucks. That's always been one of my issues was that IDJ never made sure it was being sold for a cheaper price. It was 9.99 the first week, and then instead of it being 11.99 like most cds, it's been like 14.88.

And as someone pointed out before, 12 years too late.. and yes... 10 dollars still may be too much. 9 dollars will DEF. catch people's attention tho. Still though, I would DEF be more inclined to buy cds now knowing they're 10 dollars.
it was 15.88 at every wal-mart i went to, so i waited and just got it for my b-day. i already got the obsessed single the first day it came out and d/l'ed the album when it leaked...

  

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mariahfan150

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#13 [url]

Mar 21 10 12:51 AM

They should have deals like, two for $20 with tax or something. If I could get two CD's for $20 flat, I might actually still buy albums.



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kittykow105

Posts: 9,984 B!tch, don't kill my vibe...

#14 [url]

Mar 21 10 2:45 AM

hottiecasanova wrote:
kittykow105 wrote:
Whenever I go to Target or Walmart I look for Mariah's cd. It's always being sold for like 14 bucks. That's always been one of my issues was that IDJ never made sure it was being sold for a cheaper price. It was 9.99 the first week, and then instead of it being 11.99 like most cds, it's been like 14.88.

And as someone pointed out before, 12 years too late.. and yes... 10 dollars still may be too much. 9 dollars will DEF. catch people's attention tho. Still though, I would DEF be more inclined to buy cds now knowing they're 10 dollars.
it was 15.88 at every wal-mart i went to, so i waited and just got it for my b-day. i already got the obsessed single the first day it came out and d/l'ed the album when it leaked...

  
Exactly.  I REALLY think thats one of the reasons why the album fell like a rock after its release.  Even the itunes release wasn't 9.99

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rainbow1199

Posts: 12,520 Often imitated, never duplicated.

#15 [url]

Mar 21 10 12:08 PM

I noticed an FYE store had a big $9.99 banner outside it yesterday. Of course, it's probably going out of business or something LOL.

image

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mcfan

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#16 [url]

Mar 22 10 3:48 PM

I was at the mall today and I went to the music store. There was a corner with CDs on sale at 7.99€ and it was half-empty already. The workers were actually putting some more albums on the shelves. I had never seen a shelf almost empty in the music store and 7.99€ is definitely a reasonable price for CDs.

People are still interested in buying music legally, they're just tuned off by the exaggerate prices. More discounts will surely increase sales.  

 

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