Universal Music Group Slashes CD Prices to Between $6 and $10

Good news: you can afford CDs again. Universal Music Group, one of the "Big Four" major labels, is the first to react to the years-long decline in CD sales. CD sales are down 15.4% this year, a slightly slower decline than the two years prior but still a huge drop, and though digital sales are nearing the volume of physical sales, revenues are still plummeting. Retailers and consumers alike have clamored for lower prices on CDs, and the labels have responded far too slowly, dropping from $18 to $13 in 2003. Now, UMG is radically changing the price of the dying format, to between $6 and $10 for single-disc releases. The announcement is making the other labels quite nervous--they'll probably have to follow UMG's lead, whether the program is successful or not, and really, it doesn't matter if it's successful or not, given CDs have precious few years left anyway. But sources from the other labels say that they may simply drop the standard price to $10, which while not as drastic as UMG's strategy may still encourage more CD purchases.