Music Rewind

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Newsflash: Universal Music to lower CD prices all-round

Universal Music is embarking on an ambitious but expectant programme called ‘Velocity’ to lower prices of all CDs to between USD$6-$10. This new policy was to help offset the unstoppable and incremental loss of revenue from falling CD sales.

The programme is said to begin in the second quarter of 2010, and will continue to year-end.

“We think it will really bring new life into the physical format,” says Jim Urie, the Distribution CEO of Universal Music Group.


21/03/2010 - Posted by | Music News | , , , , ,


  1. yay! But is it too late? This probably should have happened 5 years ago. Since then alot shops closed down or down sized. The CD and DVD medium might become vestiges like 8 track, cassettes and vinyl.

    Comment by ty willie | 18/07/2010 | Reply

    • It’s never too late, in my opinion. Better late than never anyways. I popped down to HMV earlier this week, and because of this initiative a strange thing is happening in the stores now:

      Take Jay-Z’s catalogue on sale in HMV, for instance. All of Jay’s albums distributed under Universal Music is now selling at SGD$11.90 apiece. An incredible price, compared to when albums were sold at twice that amount just 5 years ago. However, Jay’s latest album ‘Blueprint 3’ is currently distributed by Sony Music, and because Sony does not have this initiative, ‘Blueprint 3’ is sold at SGD$19, alongside his seemingly ‘cheaper’ other albums.

      Now, as a consumer, wouldn’t you think twice before reaching out for ‘Blueprint 3’? What Universal Music has done is to price their distributed catalogue for A-list stars now at an obviously cheaper price, resulting in these scenarios:
      a) you put down ‘Blueprint 3’ and buy his other cheaper albums instead
      b) you don’t buy anything because the price difference has made you not want to pay the higher price.

      Is Universal Music harming consumers’ willingness to buy albums from this initiative? Or are they just turning you away from their competitors?

      I suppose time will tell.

      Comment by MusicRewind | 18/07/2010 | Reply

  2. … or do you just buy the album online? Which i assume is where all the sales growth is and will be. The economic model doesn’t make that big a difference as does the medium – for example, cassettes vs vinyl or vinyl vs CDs, winners emerged despite price differences. Tomorrow everyone will have smart phones, portable listening devices and tablets all connected to the internet. CDs will not be required. As a result on demand and over the air will eventually trump CDs no matter what their sustainable price point.

    Comment by ty willie | 18/07/2010 | Reply

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