The New Stuff

universal

Music Retail News: UMG’s New Pricing Structure Designed to Get Single CDs in Stores at $10 or Below


The Universal Music Group tests a new frontline pricing structure called the Velocity program which is designed to get single CDs in stores at $10 or below. Single CDs will have the suggested list prices of $10, $9, $8, $7 and $6.

To compensate the lower pricing, UMG also plans to step up deluxe versions of albums which sell at a higher price to cater the hardcore fans and collectors. UMG is also banking that the lower price points will at the least be offset by increasing CD sales volume.

Most new releases, beginning in the second quarter and continuing through most of the year, will carry the new price points although there will be occasional exceptions, UMG sources say. It was unclear exactly when the program would begin, because Universal Music Group still hadn’t relayed that information to accounts.

“We think [the new pricing program] will really bring new life into the physical format,” Universal Music Group Distribution president/CEO Jim Urie said.

This is very brave for UMG but there are lots of executives from other major record labels who are threatened or simply annoyed by the move. I think it could do UMG good but if they are doing it solo, it is hard to tell if this new structure will really revolutionalizethe retail music industry. Nevertheless, I am happy that they are coming up with very sensible ideas to save the physical format.

Billboardbiz

_______________________________________________________________________

Unified Manufacturing is an L.A. -based one-stop-shop that offers very affordable CD/DVD/USB replication, custom printing, promotional products, warehousing and fulfillment and many more. If you need an Instant Quote on a project and you want FREE SHIPPING, simply CLICK HERE.

Share

Recently Published

»

Three Common Habits in the Routines of the Most Successful Creative People

As Zadie Smith said, there’s no “artist’s ...

»

Packaging of the Week: Gloriosa Rotonda Vinyl Sleeve

Designer: Brosmind Project Type: Produced, Commercial Work Location: ...

»

CD Packaging of the Week: Celer, Opitope (Spekk)

Artist 1-4: Opitope; 5-10: Celer Title 1-4: “Physis”; 5-10: ...

»

Should You DIY or Hire a PR Company for Your Music?

You can be the greatest musician ever born but if you have no good ...

»

Music Packaging of the Week: Big Cosmos – Illuminance USB

You might expect to get a CD or a vinyl for a box this big but this ...

»

The Music Marketing Trends You Should Try This Year

It’s not easy to be an indie musician today. You have to do ...

Queen CD packaging orb
»

8 Reasons Why It’s Time You Release Music in USB

Many musicians, from Bob Marley to Lady Gaga, have released albums in ...

Girls Generation CD packaging tin can
»

8 K-pop Albums with the Prettiest CD Packaging

The Koreans are really good at marketing their stuff and we should ...

»

10 Impractical But Totally Pretty Blu-ray Box Sets and Packaging

Sometimes, we just want to throw away money on special edition blu ...

Read previous post:
green-initiatives
Eco Packaging: How Musicians Can Pomote the Green Movement

Today, one of the biggest problems that the world is facing is global warming. We have neglected and abused the...

Close