Spotlight \

Cost In Translation

Last summer, Universal Music Group -- the largest of the five corporations that produce most of the music we hear -- made headlines by cutting the list price of its labels’ CDs by about 30 percent. Universal CDs now retail for between $10 and $13, which should pressure other labels to follow suit. Universal officials said the decision was in part an attempt to stem the tide of illegal downloading. But is slashing the price of an album enough to entice a typical downloader away from Kazaa? “There’s no question that a third to half of the decline in album sales is directly attributable to downloading,” says Russ Crupnick, vice president of the NPD Group, a marketing-information firm. “When we ask consumers why they’re buying less music, price is at the top of the list every single time.”

SPIN Staff |November 18, 2003 - 8:00 am

Tags: Spotlight