Lisa03
09-04-2003, 11:53 AM
LOS ANGELES -- The world's largest recording company says it will slash wholesale CD prices in an effort to revive lagging music sales.
Universal Music Group says it will cut the suggested sale price on a majority of its CDs by $6 to $12.98.
Prices on those albums currently range up to $18.98.
Universal says it believes retailers will start passing the lower costs on to consumers as soon as Oct. 1.
The company said the lower CD prices are designed to lure customers back to music stores and boost sales. Album sales have fallen more than 8 percent in the last year as part of an ongoing decline that the industry has blamed on Internet music-sharing and a soft economy.
The company hopes retailers will follow its lead and drop their CD prices to around $10 or less.
The company also said it would cut wholesale prices on cassettes and change the suggested retail price to $8.98.
Traditional music retailers such as Tower and Wherehouse have been suffering as large stores such as Best Buy, Target and Wal-Mart can afford to sell music at a loss that's covered by sales of more profitable items.
Universal's deep roster of artists includes U2, Eminem, 50 Cent, No Doubt and Shania Twain.
Universal Music Group says it will cut the suggested sale price on a majority of its CDs by $6 to $12.98.
Prices on those albums currently range up to $18.98.
Universal says it believes retailers will start passing the lower costs on to consumers as soon as Oct. 1.
The company said the lower CD prices are designed to lure customers back to music stores and boost sales. Album sales have fallen more than 8 percent in the last year as part of an ongoing decline that the industry has blamed on Internet music-sharing and a soft economy.
The company hopes retailers will follow its lead and drop their CD prices to around $10 or less.
The company also said it would cut wholesale prices on cassettes and change the suggested retail price to $8.98.
Traditional music retailers such as Tower and Wherehouse have been suffering as large stores such as Best Buy, Target and Wal-Mart can afford to sell music at a loss that's covered by sales of more profitable items.
Universal's deep roster of artists includes U2, Eminem, 50 Cent, No Doubt and Shania Twain.