‘Cos They Needed The Cash

If you live in the United States, you’ll hopefully be paying less for the next U2 album — Universal Music Group, the conglomerate which owns Interscope Records (U2’s label), plans to cut its wholesale prices, lowering the suggested retail price of their discs to $12.98 from $18.98. The price change would reportedly take effect October 1st. Cross your fingers… (There’s no news yet on whether or not UMG will extend this policy to international markets.)

50 thoughts on “‘Cos They Needed The Cash

  1. Just a thought on this.. are they cutting the royalty payments to the artists by the same percentage? or are they and the retailer absorbing this costs. Coz they are cutting the money coming in by a whopping 33%.

    33% of a an $18 dollar sale does not sound like much. Multiple this by 1 million sales & the numbers start getting very big, very quickly.

    From my, somewhat limited knowledge, I understand that roughly half the purchase price of a CD goes to the wholesaler/retailer channel These guys might not be to happy, selling something for 1/3 less than they used to. Mind you, they can still sell CD’s at whatever price they want. Retailers are really important in the music biz, as the retail sales they REPORT pretty much set the charts.

    Could mean that universal’s artists sell more CD’s & push these artists higher in the charts, leading to more publicity, & hopefully, higher sales. Also seems they want to attract people like me who just got out of the habit of buying new music – got a family now, & just can’t afford to blow money on some stupid boy band.. & hey.. I got Kazaa.

    Could mean retailers & wholesalers stop distributing Universal artists, or stop reporting Universal artists sales, so they don’t make the charts.

    Could also happen that by telegraphing this move one month in advance, all the other labels will pretty much follow suit.

    Simple maths tells me that a label to have to sell over 33% more CD’s to make this break even.

    Whatever happens – we the consumer wins. More music for less money..

    [gratuitous flame bait]
    This is capitalism at work..
    [/gratuitious flame bait]

  2. Just a thought on this.. are they cutting the royalty payments to the artists by the same percentage? or are they and the retailer absorbing this costs. Coz they are cutting the money coming in by a whopping 33%.

    33% of a an $18 dollar sale does not sound like much. Multiple this by 1 million sales & the numbers start getting very big, very quickly.

    From my, somewhat limited knowledge, I understand that roughly half the purchase price of a CD goes to the wholesaler/retailer channel These guys might not be to happy, selling something for 1/3 less than they used to. Mind you, they can still sell CD’s at whatever price they want. Retailers are really important in the music biz, as the retail sales they REPORT pretty much set the charts.

    Could mean that universal’s artists sell more CD’s & push these artists higher in the charts, leading to more publicity, & hopefully, higher sales. Also seems they want to attract people like me who just got out of the habit of buying new music – got a family now, & just can’t afford to blow money on some stupid boy band.. & hey.. I got Kazaa.

    Could mean retailers & wholesalers stop distributing Universal artists, or stop reporting Universal artists sales, so they don’t make the charts.

    Could also happen that by telegraphing this move one month in advance, all the other labels will pretty much follow suit.

    Simple maths tells me that a label to have to sell over 33% more CD’s to make this break even.

    Whatever happens – we the consumer wins. More music for less money..

    [gratuitous flame bait]
    This is capitalism at work..
    [/gratuitious flame bait]

  3. the idea of lowering cd prices has been inthe works for some time now, ever since napster hit the scene, in order to encourage people to buy instead of pirate. yes, matt, the distributors are losing a lot of money in the long run. but the music industry is in a crisis; this calls for desperate measures. I’ve heard the goal is to get cd prices down to about $10. like you said, the consumer wins. and this is capitalism at work, on our side. 🙂

  4. the idea of lowering cd prices has been inthe works for some time now, ever since napster hit the scene, in order to encourage people to buy instead of pirate. yes, matt, the distributors are losing a lot of money in the long run. but the music industry is in a crisis; this calls for desperate measures. I’ve heard the goal is to get cd prices down to about $10. like you said, the consumer wins. and this is capitalism at work, on our side. 🙂

  5. scott, you mean there are going to be other songs to listen to on an album besides beautiful day? sweet. i hope so. can’t wait.

  6. scott, you mean there are going to be other songs to listen to on an album besides beautiful day? sweet. i hope so. can’t wait.

  7. wait, aren’t they doing this ’cause they’re losing money from downloadable music? they should take their heads out of their asses and embrace the new technology, instead o fselling overpriced CDs. anyway, who the hell in their right mind ever paid $18.98 for a cd? not me. that’s just plain dumb.

  8. wait, aren’t they doing this ’cause they’re losing money from downloadable music? they should take their heads out of their asses and embrace the new technology, instead o fselling overpriced CDs. anyway, who the hell in their right mind ever paid $18.98 for a cd? not me. that’s just plain dumb.

  9. Ha-ha…stop it!…you’re kiliing me! Did I just read something about the “next U2 album”? The very notion of U2 delivering a “new album” is funny. Don’t worry about the reduced pricing. By the time the boys actually release the new album, there will probably be another music format invented to replace the compact disc.

  10. Ha-ha…stop it!…you’re kiliing me! Did I just read something about the “next U2 album”? The very notion of U2 delivering a “new album” is funny. Don’t worry about the reduced pricing. By the time the boys actually release the new album, there will probably be another music format invented to replace the compact disc.

  11. I paid $3,000 and all I got was a 20 minute Linkin Park interveiw… This is great news, the best thing they could have done!!! It’s about friggin’ time!!! And yes, music will be in micro-bionic-spore format by the time U2 release another album (or at least it feels like that long)…

  12. I paid $3,000 and all I got was a 20 minute Linkin Park interveiw… This is great news, the best thing they could have done!!! It’s about friggin’ time!!! And yes, music will be in micro-bionic-spore format by the time U2 release another album (or at least it feels like that long)…

  13. $9.99 that should be the price for every new album. that comes out then people well storm, to the record shop and by a whole bunch of cds meaning more sales in the long run 18 bucks way to much. for u2 id pay 40 bucks for any of there music cause it stays with you but most albums die after the 4th listen thats my 50cents .

  14. $9.99 that should be the price for every new album. that comes out then people well storm, to the record shop and by a whole bunch of cds meaning more sales in the long run 18 bucks way to much. for u2 id pay 40 bucks for any of there music cause it stays with you but most albums die after the 4th listen thats my 50cents .

  15. hey lemonhead…obviously you haven’t heard all that you can’t leave behind. it’s been collecting dust since it came out.

  16. hey lemonhead…obviously you haven’t heard all that you can’t leave behind. it’s been collecting dust since it came out.

  17. what a sad state our music industry is in , that is took them this long to figure this out.

    they could have fired their entire business staff , hired me and I could have told them this 2 years ago.

    losers.

  18. what a sad state our music industry is in , that is took them this long to figure this out.

    they could have fired their entire business staff , hired me and I could have told them this 2 years ago.

    losers.

  19. Just an aside, this article in the New York Times indicates that Tickmaster will start auctioning off prime seats at concerts.
    http://www.nytimes.com/2003/09/01/technology/01TICK.html?ex=1062993600&en=16048ce77a000608&ei=5062&

    hmmn… wonder if record co’s will watch & learn. They could sell the basic product at a sensible price, then sell other stuff at what the market will pay. Say auction off the first CD of the press, signed CD’s.. all sorts of product augmentation here..

    also would internet ticket auctions kill waiting inline for 2 days outside the ticket booth for the best seats? I’ve met some great people queuing for U2 tickets.

  20. Just an aside, this article in the New York Times indicates that Tickmaster will start auctioning off prime seats at concerts.
    http://www.nytimes.com/2003/09/01/technology/01TICK.html?ex=1062993600&en=16048ce77a000608&ei=5062&

    hmmn… wonder if record co’s will watch & learn. They could sell the basic product at a sensible price, then sell other stuff at what the market will pay. Say auction off the first CD of the press, signed CD’s.. all sorts of product augmentation here..

    also would internet ticket auctions kill waiting inline for 2 days outside the ticket booth for the best seats? I’ve met some great people queuing for U2 tickets.

  21. Matt, the part that’s missing in your equation is that 66% of something is still more money than 100% of nothing.

    to answer another part of your question… the artist’s royalty percentage depends on how each artist’s contract was negotiated. traditionally contracts stipulated a certain percentage on retail pricing, but the trend over the last 10 years or so has been for the royalty rate to be based on the wholesale price.

  22. Matt, the part that’s missing in your equation is that 66% of something is still more money than 100% of nothing.

    to answer another part of your question… the artist’s royalty percentage depends on how each artist’s contract was negotiated. traditionally contracts stipulated a certain percentage on retail pricing, but the trend over the last 10 years or so has been for the royalty rate to be based on the wholesale price.

  23. chris, you are soooooo wrong about ATYCLB, Walk On is one of the top ten ( if not top 5 )U2 tunes of all time and if you live in th US, the whole album will never collect dust.
    It’s timimg was so unique to the times that came after it’s release. as a nation we had to walk on, not remain stuck in a moment, we had to elevate like a kite with grace and search through new york for some peace on earth. and in a little while it became clear we would see more beautiful days…
    peace…

  24. chris, you are soooooo wrong about ATYCLB, Walk On is one of the top ten ( if not top 5 )U2 tunes of all time and if you live in th US, the whole album will never collect dust.
    It’s timimg was so unique to the times that came after it’s release. as a nation we had to walk on, not remain stuck in a moment, we had to elevate like a kite with grace and search through new york for some peace on earth. and in a little while it became clear we would see more beautiful days…
    peace…

  25. ~~should have included…thoughts abobe are of course just one opinion, no offense to chris.

    I do find it funny how we bash the boys for taking time to put out a good product, or more importantly, taking a VACATION!

  26. ~~should have included…thoughts abobe are of course just one opinion, no offense to chris.

    I do find it funny how we bash the boys for taking time to put out a good product, or more importantly, taking a VACATION!

  27. ~~should have included…thoughts above are of course just one opinion, no offense to chris.

    I do find it funny how we bash the boys for taking time to put out a good product, or more importantly, taking a VACATION!

  28. ~~should have included…thoughts above are of course just one opinion, no offense to chris.

    I do find it funny how we bash the boys for taking time to put out a good product, or more importantly, taking a VACATION!

  29. All us hardcore fans know that everything since Street Mission was crap!!! LOL!!! Man, has U2 ever done a crap album??? NO!!! Some are better than others, but the answer is no… IMHO, anyway…

  30. All us hardcore fans know that everything since Street Mission was crap!!! LOL!!! Man, has U2 ever done a crap album??? NO!!! Some are better than others, but the answer is no… IMHO, anyway…

  31. ryan, maybe Zooropa was a musical journey to far. If I put it on i always end up skipping to Stay, then take it off straight after. Mind you, I would not call it crap coz its got one great song on it. Madonna’s new ablum, yes. Along with and anything by Britney, Blue, Westlife, Busted, ..etc..

  32. ryan, maybe Zooropa was a musical journey to far. If I put it on i always end up skipping to Stay, then take it off straight after. Mind you, I would not call it crap coz its got one great song on it. Madonna’s new ablum, yes. Along with and anything by Britney, Blue, Westlife, Busted, ..etc..

  33. I agree with slug, it’s dumb if you’re a middle-class person paying 18 dollars for ALL your cds. But I think most people have a very narrow view of music and only buy from one or two artists…ahem…therefore, they’re willing to dish out the one-time fee. But what happens when those artists stop producing? You want to check out your options and it’s harder to do that when you really don’t know what the artists are worth to YOU. $18 for a cd can suddenly turn into a really big turn-off. For example, the new Annie Lennox cd…so what if she spills her soul out on the album..it ain’t worth THAT MUCH.

  34. I agree with slug, it’s dumb if you’re a middle-class person paying 18 dollars for ALL your cds. But I think most people have a very narrow view of music and only buy from one or two artists…ahem…therefore, they’re willing to dish out the one-time fee. But what happens when those artists stop producing? You want to check out your options and it’s harder to do that when you really don’t know what the artists are worth to YOU. $18 for a cd can suddenly turn into a really big turn-off. For example, the new Annie Lennox cd…so what if she spills her soul out on the album..it ain’t worth THAT MUCH.

  35. So my point is, U2 don’t have to compete by lowering their cd prices if they rely on the market they’ve always had. They certainly shouldn’t lower their concert ticket prices.

  36. So my point is, U2 don’t have to compete by lowering their cd prices if they rely on the market they’ve always had. They certainly shouldn’t lower their concert ticket prices.

  37. its very unfortunate what music companies have to do now because stupid people steal music. And If you’re offended, im terribly sorry but put yourself in your favorite artist(s) position. How would you feel if people stole your songs?! and dont give me this crap about them being rich, it still doesnt give you a right to steal…this is technology at its worst!!! also if u want to listen to a song before u buy the cd, go download a 30 second clip a bestbuy you lazy bums

  38. its very unfortunate what music companies have to do now because stupid people steal music. And If you’re offended, im terribly sorry but put yourself in your favorite artist(s) position. How would you feel if people stole your songs?! and dont give me this crap about them being rich, it still doesnt give you a right to steal…this is technology at its worst!!! also if u want to listen to a song before u buy the cd, go download a 30 second clip a bestbuy you lazy bums

  39. Um…what is the definition of stealing when it comes to intellectual property? Any lawyers in da howz? Most RAP music is sampling or stealing cuz dey make a profit offa it. How can an artist complain about someone making more money off their hit melody when they made (at the time of release) millions of dollars with interest!

  40. Um…what is the definition of stealing when it comes to intellectual property? Any lawyers in da howz? Most RAP music is sampling or stealing cuz dey make a profit offa it. How can an artist complain about someone making more money off their hit melody when they made (at the time of release) millions of dollars with interest!

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