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T O P I C R E V I E W
KevinLesko
Posted - 09/04/2003 : 7:58:21 PM Universal cuts CD prices
Music company lowers prices up to 30% in attempt to win back customers downloading songs. September 4, 2003: 2:03 PM EDT
NEW YORK (CNN) - Hoping to win back customers lost to free music downloads, one record company is slashing prices.
Universal Music Group said Wednesday it is cutting the suggested retail price of its compact discs to $12.98 from current prices ranging from $16.98 to $18.98.
The change is effective Oct. 1.
Universal sells nearly 30 percent of all albums in the United States, according to the company. Artists in its catalog include Eminem, Dr Dre, Sting, Elton John and Ashanti. The price cut also includes its catalog of older albums, with music by The Who, Jimi Hendrix, Ella Fitzgerald and Nirvana.
"The music industry has really been under siege.... The illegal file-sharing and peer-to-peer sites have really eaten into the music business in the last few years," Jim Urie, president of Universal Music and Video Distribution, said on CNNfn's The Biz Thursday. He estimated that industry-wide sales are down 30 percent from four years ago due to illegal downloads.
"We feel like we've got to make this change to make music a better value for the consumer," he said. "There's no question we're down to the sweet spot with consumers."
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Saint Jude
Posted - 09/04/2003 : 8:15:33 PM good, the lower it gets the better. they still make quite a good profit since it only costs like $2 to make a cd/booklet/jewel case.
