Headlines

March 03, 2008

Wal-Mart proposes new CD price plan...labels wonder 'Do we give up 20 percent of our business (i.e., Wal-Mart) in order to not lose the entire business?'

Billboard | Read Full Story >

According to sources, the Wal-Mart proposal would allow for a promotional program that could comprise the top 15 to 20 hottest titles, each at $10. The rest of the pricing structure, according to several music executives who spoke with Billboard, would have hits and current titles retailing for $12, top catalog at $9, midline catalog at $7 and budget product at $5. The move would also shift the store’s pricing from its $9.88 and $13.88 model to rounder sales prices.

Executives at the Bentonville, Arkansas-based discounting giant wouldn’t comment on the specifics of their promotion, but Wal-Mart divisional merchandise manager for home entertainment Jeff Maas acknowledged the proposal. “When you look at sales declines with physical product, and you have a category declining like it is, you have to make decisions about what the future looks like,” he said. “If you have a business that is declining and you want to turn it around, it really takes looking at it from all angles.”


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3 Comments

#1 joe blog says:

Isn't it illegal for a retailer and a label to collaborate on pricing?

#2 McKilla DaNilla says:

It still seems ridiculous to pay $9 for, say, Sgt. Pepper's Lonely Hearts Club Band, $7 for Give 'Em Enough Rope and $5 for Fun House when the money was made a long time ago. The only way cds are gonna sell is if kids can afford to buy them. That's why pretty soon there will be no more MAJOR LABLE

#3 I feel... says:

...steam coming out of Master N. Servant's ears right now!
death to MAJOR LABLE!


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