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US will enjoy cheaper CDs - US will enjoy cheaper CDs
Thu, September 04 2003 | 1:23PM | PermaLink Feedback?
Music fans in the US will enjoy cheaper CDs after the world's largest record company, Universal, announced plans to cut the price of albums by up to 30%. Universal - which has artists like U2, Eminem and Sir Elton John on its roster - said it hoped to "invigorate" the market after a three-year slump. From October, the company will put the "suggested" price for most CDs at $13 (£8.25) - down from $17-19 (£11-12). Album sales in the US dropped 15% between 2000-2002 - blamed on "piracy". The music industry says it has lost out to free, unauthorised song sharing websites and the proliferation of CD-copying. Universal Music president Zach Horowitz said a price of $12.98 was the "sweet spot" that would make their records sell. "We're confident that when we implement this we will get a dramatic and sustained increase," he said. The current wholesale price to record stores is $12.02 - but this will now start at $9.09. But Universal said it had not discussed the change with retailers and it is not known whether record stores will honour the new suggested price.
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