In a shocking move yesterday, Universal Music, the world’s largest record company, said it would cut wholesale prices by up to $3 per CD, due to a 31% drop in sales over the last 3 years (industry wide).

Current wholesale prices per CD start at $12.02USD, with the average retail price being $18.98USD. Under the new pricing scheme, Universal hopes that retailers will also cut their prices by $3, bringing the average CD to about $10USD.

“Our new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products,” Jim Urie said. “We are confident this pricing approach will drive music fans back into retail stores.”

It is unknown at this time if these new prices will affect worldwide distribution channels or just in the United States. You can expect to see these lower prices beginning October 1st.






Related Stories: