Universal to Sell CDs for $10 - Duh.

In a remarkable, but delayed, achievement of common sense, Universal Music Group announced plans to drop prices on all of their new CDs to $10 or less. Universal is one of the largest music companies in the world, so this is big news in an industry that changes directions slower than the Titanic. The plan, which goes into effect this summer and will last through the rest of the year, is designed to reclaim consumers who have ditched the overpriced CD in favor of the digital download over the past several years.

Wow. CDs for $10... that's just... profound. I certainly hope the man in charge of that decision gets a huge payout bonus. Considering that iTunes is now the largest retailer of music in the U.S. and has been selling $10 albums since 2003, it's absolutely mind-boggling that the music industry is NOW trying to play catch-up. To-date iTunes has sold over 10 billion songs. Yes, that's with a 'B'.

The new "trial" (heaven forbid they actually commit to anything) will include a sample of the label’s new releases and include most major retailers like Best Buy, F.Y.E. and Wal-Mart. Of course albums that have dual disc sets and special features will still break the $10 barrier and sell for more.

According to an article from the Assocoated Press, Jim Urie, the head of distribution at Universal, said CD sales had doubled at stores running a limited test of the $10 pricing strategy.

You think? Maybe? Welcome to the year 2010, Universal. What's really sick is that there are other music companies that won't get this until next year after it's proven that "lower prices equate to more sales". Digital music and the record labels/studios are like a race between the tortoise and the hare... except that the tortoise has been shot and is crawling on two legs... with a crushed shell... and the hare is riding in a Ferrari.

Lower prices, higher sales. It's remarkable just how simple that is. Genius, in fact. Absolute genius. It will be interesting to see if Universal will share this insight with other companies. Perhaps they should consider teaching it in college economic courses. Considering the fact that CD sales have dropped by more than half since 2000, you would imagine that this would have been tried a lot earlier... like the day after iTunes launched.

According to Mr. Urie, "the casual fan isn’t willing to pay $15 dollars for a regular CD."

No, Mr. Urie. They really aren't. And they haven't been willing for over 5 years now.

Retail experts are expecting the new pricing model to increase sales volume by 30 percent or more.