Universal Music Group (UMG), one of the "Big 4" record labels has announced its latest ploy to increase physical CD sales in the U.S., slashing prices of new releases to under $10.
Dubbing the pricing program "Velocity," UMG hopes that consumers will go out and buy CDs, which will still retail for higher prices than the comparable songs digitally, but with a closer gap.
"We think it will really bring new life into the physical format," adds Universal Music Group Distribution chairman/CEO Jim Urie.
Wholesales prices for new releases have now been dropped to an average of $7.50 from $10.35, and MSRPs for retail prices are dropped to between $6 and $10.
UMG is hoping that the big hit taken to revenue can be made up with an increase in sales volume. Overall CD sales are already down 15 percent year-on-year, with bigger drops expected.
Velocity is set for a Q2 launch and should last through the holiday season.
"We think it will really bring new life into the physical format," adds Universal Music Group Distribution chairman/CEO Jim Urie.
Wholesales prices for new releases have now been dropped to an average of $7.50 from $10.35, and MSRPs for retail prices are dropped to between $6 and $10.
UMG is hoping that the big hit taken to revenue can be made up with an increase in sales volume. Overall CD sales are already down 15 percent year-on-year, with bigger drops expected.
Velocity is set for a Q2 launch and should last through the holiday season.
