Here’s a nice little surprise:

“The average retail price of full-length CDs fell to $13.29 in the first quarter of 2004–a decline of 4 percent from the same period a year ago, according to a new study. The top 50 CD sellers nationwide sold discs for an average price of $13.36, a drop of 3.1 percent versus a year ago, said a survey released Thursday by the NPD Group. Meanwhile, catalog CDs–comprised of titles that are 18-months-old or more–dropped below the $13 threshold to $12.99.”

npd_060304

I’ll give partial credit to NPD for getting half of it right:

“NPD President Russ Crupnick attributed the decline in part to a changing market due to the file-sharing boom. In addition, competition for entertainment dollars has become tougher for the recording industry in an environment that saw DVDs and video games growing at double-digit rates.” (bolded section grade “A”)

Here: You judge the accuracy of this statement:

Record labels are diligently trying to respond to consumer feedback about high CD prices, and to the relative value of music,” Crupnick said. “According to a consumer survey conducted earlier this year, one out of three CD buyers report rank the price of CDs important’ or very important’ in their purchase decision.”

Me neither . . .

UPDATE June 4, 2004 6:07am
Rojisan astutely points out that the average selling price of an Album (to use the term loosely) on Magnatune is $8.59.

Indeed, I just paid $9.99 for new CDs of Mose Allison Chronicles: Live in London, Vol. 1 and Aimee Mann ‘s Lost in Space via Amazon’s deal with CD Now. Sarah Mclachlan’s Afterglow was even cheaper: $7.99.

The question I have for iTunes Music Store (and others), who are under industry pressure to raises their prices: Why would (or should) I pay the same amount of money for a downloaded album — much worse sound quality, no physical liner notes, album art, etc. — as a CD? If I want to listen in the car to the ITMS version, I must burn a CD, spending my time and money. Where’s the value proposition in that?

Quite frankly, I don’t see the merit in a $10 MP3 album. But if the $13 CD is too expensive, isn’t the $13 MP3 version of the same album way too expensive? As the Magnatune pricing model demonstrates, yes — by about 55% . . .

Source:
CD Price Declines are Accelerating, Says The NPD Group
Lee Graham
The NPD Group, Inc.

http://www.npd.com/press/releases/press_040603.htm

Study: CD prices sing the blues
CNET, June 3, 2004, 10:09 AM PDT

http://news.com.com/2100-1027-5225657.html

Category: Finance, Music

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “CD prices drop slightly”

  1. music value – some metrics

    i guess synthesis is what i do here, so here’s a quickie on the business of music… with a nod to barry ritholtz, whom i’ve neglected for too many moons, and John Buckman, whom i’ve pretty much neglected since i…

  2. music value – some metrics

    i guess synthesis is what i do here, so here’s a quickie on the business of music… with a nod to barry ritholtz, whom i’ve neglected for too many moons, and John Buckman, whom i’ve pretty much neglected since i…

  3. music value – some metrics

    i guess synthesis is what i do here, so here’s a quickie on the business of music… with a nod to barry ritholtz, whom i’ve neglected for too many moons, and john buckman, whom i’ve pretty much neglected since i…

  4. music value – some metrics

    i guess synthesis is what i do here, so here’s a quickie on the business of music… with a nod to barry ritholtz, whom i’ve neglected for too many moons, and john buckman, whom i’ve pretty much neglected since i…