Music for less.(Vidbits)(Universal Music Group will cut the price of CDs by up to 30%)(Brief Article)

Video Business, September, 2003 by Sweeting, Paul

* Universal Music Group, the largest of the Big Five record distributors, said last week that as of Oct. 1, it will slash the price of new CDs by as much as 30%. The suggested list price will drop to $12.98, compared to industry-standard list prices of $16.98 to $18.98. The wholesale price of a CD will drop to $9.09 for most releases, compared to the $12.02 that UMG currently charges retailers.

For certain high-profile acts, the list price of new releases will start at $10.10 before dropping to $9.09. UMG also said it is eliminating promotional and display allowances typically paid to retailers and will instead plow that money into greater consumer advertising and promotion.