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Altitunes is a Music retailer located almost exclusively in airports. Not exactly the most competitve of retail spaces — captive audience and all that.

The one non-airport location is Grand Central Station — right across from my office. I walk by it a few times aweek. Their latest promotion is 2 CDs or DVDs for $25.

This may not be the best pure sale prices — Target regularly runs $7.99 CD and $9.99 DVD sales, and this week, Best Buy is advertising a “3 DVDs for $20 sale.”

But it points out an interesting conundrum facing the music industry: The competitve pressures they have been facing from the Film industry are actually increasing.

If DVDs — with 2+ hours audio/video, plus many extra features, interviews, fan items — can be sold at the price point of 3 for $20, then why can’t CDs? Even if the BestBuy promotion is a loss leader (I’m not sure it is) — there is something unequivocally broken about the CD pricing model.

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Category: Film, Finance, Music

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One Response to “CDs or DVDs: 2 for $25”

  1. Does the Entertainment Industry Get It?

    Barry Ritholtz has a nice pair of posts on Atlitunes, which rents CDs or DVDs, and DVD station, which rents DVDs for a buck. Maybe…