Printed from http://www.electronista.com

iTunes dictating CD prices?

updated 12:00 pm EST, Wed January 31, 2007

iTunes Dictating CD Prices

The cost of an album at the iTunes Store is likely determining the overall cost of physical CDs, an anonymous industry contact has told SeekingAlpha. The benchmark $10 price for an album through Apple's online shop is said to have forced major labels to heavily discount their higher-profile releases to compete, with many of Amazon's bestsellers seeing a dramatic 47 percent price drop. Brick-and-mortar retailers have also felt an intense pressure to compete more directly with iTunes, the source said, pointing specifically to Wal-Mart's persistent fear of losing its dominance over low-cost album sales to Apple.

Some of these prices were spurred on by the lower costs of indepdendents and special promotions, according to the industry expert. However, the drops also mirror the steady decline of major labels' physical sales. EMI in particular is in "such bad shape" that it has taken to price reductions on most of its newest release in an attempt to prop up its flagging business, the source said. Conspicuously, some of EMI's largest back-catalog artists -- including Radiohead and The Beatles -- are also those who have so far declined to sell their music through direct downloads.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. ClevelandAdv

    Fresh-Faced Recruit

    Joined: Jul 2004

    0

    Artists....

    ...Demand your stuff be available through digital download or you will lose money!

    Your lables are stupid and do not understand their business. (Can you say E-M-I)

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Crucial MX100 256GB SATA-3 SSD

While the price-per-gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

Blue's Mikey Digital

Blue Microphones, a company that makes some of the most popular digital USB microphones among podcasters and musicians, has for some t ...

Sponsor

toggle

Most Commented

 
toggle

Popular News