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Article: Move to the music: music should adopt a price and distribution model designed to meet actual consumer demand.(Headliners: the week of September 15, 2003)
- Article from:
- Video Business
- Article date:
- September 15, 2003
- Author:
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EXECUTIVE SUMMARY
* Unlike the movie business, new music releases must sink or swim with a single release window. Music listeners clearly want to be able to acquire individual tracks on an a la carte basis, and the record labels must meet that demand. In the process, they might diversify their revenue streams.
Even after slashing the wholesale price of CDs by more than 25%, as Universal Music Group said it would do starting Oct. 1, it's fair to assume the company is still selling discs at a profit.
Whatever else that might mean, it implies that CDs have had some pretty fat margins on them up to now. That's a family secret the other record ...