 Friday, September 12, 2003
CD Price Drops Coincide with MP3 Hardware Breakthroughs
"Consumers have been moaning about inflated CD prices for years, but their complaints have fallen on deaf ears--until now. Universal Music Group (UMG) just announced that it will dramatically reduce its CD pricing, beginning October 1, to $12.98 and below. Whenever one of the major labels has altered its pricing, the others have followed suit, meaning that most CDs should be in the $10-to-$14 range within a few months--the first time CD prices have ever dropped, despite promises from labels that prices would fall in the years following the launch of the CD....
People have simply reached the point where they no longer think a CD is worth $18. Before the widespread adoption of CD burners, most of us had no idea how little it cost to produce a CD, but now we're wiser, though the more expensive, nonphysical aspects of CD production remain a mystery to most. And these days, if consumers want music, they obviously have several online alternatives to record stores. Besides, many prefer to spend their money on DVDs instead--a fact not lost on UMVD (Universal Music and Video Distribution) president Jim Urie, who said UMG's "new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products."
Finally and grudgingly, the labels likely agree with the Forrester analysts who say that CDs are a doomed medium. This might be their last chance to sell shiny discs before consumers move on to pure digital formats. In the future, MP3 players might even be sold much like cell phones are today--as loss leaders for service plans. Perhaps you'll even get a free iPod in exchange for signing a contract to purchase a certain amount of music from the iTunes Music Store over the next couple of years." [MP3 Insider]
Gee, do you think those subscription-based players will play files circulated by libraries? Or only items tied to a credit card?
At this rate, libraries may be one of the few profitable markets left for the music industry....
Excellent! I'm listening to the new Sarah McLachlan song on Rhapsody. It's from the upcoming album, her first real one in six years. And check out this press release on her web site:
"Sarah McLachlan's first new studio album in 6 years, titled 'Afterglow', is set for release on November 4th, 2003.
Sarah and Nettwerk have responded to the demands of fans by insisting on a suggested list price for her upcoming CD to be set at $15.99, 20% lower than the standard suggested list price of $20.49.
With the first single from the album, 'Fallen', currently at radio, Sarah McLachlan will be touring extensively in support of the new album in 2004."
Just out of curiousity, can anyone tell me if it's available in iTunes? I know it's not available at BuyMusic. Interesting that they're releasing the single so early.
Marylaine's latest book is now available!
Net Effects: How Librarians Can Manage the Unintended Consequences of the Internet
"The Internet is a mixed blessing for libraries and librarians. On the one hand, it provides opportunities to add services and expand collections; on the other, it has increased user expectations and contributed to techno-stress. Today, the Net is challenging librarians' ability to select, threatening the survival of the book, necessitating continuous retraining, presenting new problems of access and preservation, putting new demands on budgets, and embroiling information professionals in legal controversies.
In Net Effects, librarian, journalist, and Internet guru Marylaine Block examines the issues and brings together a wealth of insights, war stories, and solutions. Almost 50 articles by dozens of imaginative librarians, expertly selected, annotated, and integrated by the editor, suggest practical and creative ways to deal with the range of Internet 'side effects," regain control of the library, and avoid being blindsided by technology again."
And yeah, there's a chapter about "shifting." :-)
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