BMG to lower cost of music CD’s to help increase sales
From August, some popular music CDs will become less expensive. A new sales strategy from Bertelsmann will be to sell CD’s in different versions for different prices to help offset the increasing piracy and theft common on the Internet and at home with cheap CD writers.
The cheapest CD’s will retail at €9.99 and will have no cover or booklet. The CD title and artist’s name will simply be printed on the CD similar to a pirated disc.
For a little more money at €12.99 there will be the normal version complete with a proper cover and insert, lower than the typically current price of €16.99.
Finally is the luxury edition at €17.99. This version will contain DVD extras and some special features.
BMG, which is currently in the process of merging with Sony Music, said it hopes this new strategy will help increase music sales by 25% but openly admitted it is unsure of the success of this new endeavour
CD sales face increasing online competition from legal and illegal music downloads. The recently launched Apple iTunes Music Store for Europe sells whole albums for around €10 and while the quality is not as good for home use, it is perfect for their iPod music player and has proven very popular so far.
