Pitchfork

[Posted Thursday, September 4th, 2003 02:00:00 Pitchfork Central Time]

Once upon a great while, the Pitchfork newswire gets a press release so completely over-the-top unbelievable, it simply has to be checked out. So you can imagine my Mr. Furley-esque double-take upon reading the headline "UNIVERSAL MUSIC GROUP, World's Largest Music Company, DRAMATICALLY REDUCES CD PRICES." That's right-- one of the five major label groups announced a plan yesterday to lower the list price of most top-line CD's to a jaw-dropping $12.98, effective as early as October 1st. Wholesale prices will be decreased as much as 30 percent, effectively reducing the end price of many discs to between $10 and $12 at many retail outlets.

Universal's stable of labels includes Interscope, Geffen, A&M;, Island, Def Jam, MCA, Lost Highway, Motown, Mercury, and Verve. The group's collective roster includes such powerhouse sellers as Eminem, 50 Cent, Limp Bizkit, Guns 'n' Roses, Peter Gabriel, and U2, as well as Pitchfork faves ...And You Will Know Us By The Trail Of Dead, Beck, Elvis Costello, PJ Harvey, Queens of the Stone Age, Sonic Youth, and Weezer. The new pricing policy will cover both new and current releases as well as catalog titles from the likes of Eric Clapton, Jimi Hendrix, Nirvana, The Police, The Velvet Underground, The Who, Hank Williams, and of course the Motown back catalog. By its own estimation, Universal Music Group artists account for almost 30 percent of domestic record sales.

The unprecedented move is widely expected to generate a fourth-quarter price war among the major labels, who may be forced to follow Universal's lead and go for volume sales and consumer loyalty (as opposed to charging $19 for a freakin' Andrew W.K. CD and suing the bejeezus out of you if you share it online). This could be excellent news for music retailers as the Christmas season approaches. Clinging to the stubborn formula of minimal selection and exorbitant prices, many chain stores have been forced to close underperforming locations while indie retailers, specialty shops, used-disc sellers, and online operations have actually seen an increase in sales in the last two years.

While it's too early to start applauding just yet, let's give Universal some props (I never thought I would say that) for listening to consumers rather than marketers for a change. Any move away from gouging, alienating, and litigating their own music-loving customers has got to be a step in the right direction.