In just a few months, Universal Music Group is dropping the prices on their CDs to between six and ten dollars each in an effort to boost sales. While the company does have its hand in the music download and streaming side of things, their profit margins are much better with physical disc sales. Up until now, however, it usually cost far more to buy a copy at the local WalMart than it did to purchase the entire album digitally.
In addition to the lower cost, UMG plans to add extra content to physical CDs that cannot be purchased online. Their hope is the combination of the lower cost packed with additional features will bring sales out of the serious slump they find themselves in. I personally love this idea, and will likely buy more compact discs than normal. I do buy music online, sure. But there’s just something about owning those sweet little silver discs that I am hopelessly addicted to. What about you? Will the lower cost cause you to go out and buy more music in hard copy form?
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