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UMG Tests Lower CD Prices

March 18, 2010/by contributor

The Universal Music Group has announced that it will begin testing a new pricing structure in the second quarter designed to get single CDs in stores at $10 or less. The company’s Velocity program will introduce the lower CD prices. Single CDs will have the suggested list prices of $10, $9, $8, $7 and $6.

UMG labels also plan to market more deluxe versions of albums that can sell at higher prices for the more devout music fans and collectors. The company is hoping that the lower prices will be offset by increasing CD sales.

Back in 2003, UMG became the first major to address declining sales when it initiated Jumpstart pricing, which offered CDs at $10.35. The other majors balked at lowering prices until years later.

“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. We think [the new pricing program] will really bring new life into the physical format.”

UMG plans to maintain its current pricing for digital product.

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https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png 0 0 contributor https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png contributor2010-03-18 12:40:032010-03-18 12:40:03UMG Tests Lower CD Prices
0 replies
  1. Lisa
    Lisa says:
    March 18, 2010 at 3:51 pm

    I’m happy to hear this.because I haven’t been able to buy cds for a very long time. i hope UMG makes deluxe versions of Billy Currington’s cds.

    Log in to Reply
  2. charlie
    charlie says:
    March 18, 2010 at 6:44 pm

    Great, but this could have and should have been done years ago. For too long, The Music industry was too busy counting the money to care much for fair pricing or the advent of Itunes which now threatens to eat their lunch.

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Trackbacks & Pingbacks

  1. ACM Awards Performers Announced; Peter Cooper On Co-Writing; Free Court Yard Hounds | The 9513 says:
    March 24, 2010 at 10:11 am

    […] Music Group announced plans to place CDs in stores for $10 or less with the hope that the lower cost will be offset by increased […]

    Log in to Reply
  2. Some suggestions for reviving music sales « My Kind Of Country says:
    March 24, 2010 at 6:01 am

    […] the major labels have begun a variety of experiments with way they release and distribute music. Universal Music Group recently announced that they will be lowering the prices of CDs. Warner Bros. and Curb have opted  to have their artists release two or three albums of shorter […]

    Log in to Reply
  3. uberVU - social comments says:
    March 18, 2010 at 10:12 pm

    Social comments and analytics for this post…

    This post was mentioned on Twitter by BNAMusicLawyer: lower CD SRLPs will impact artists…will it work to increase sales?https://musicrow.com/2010/03/umg-tests-new-lower-pricing/…

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