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Universal Sales Increase Outperforms Industry by 400%
Posted By Barry Ritholtz On February 3, 2005 @ 7:19 am In Finance,Music | Comments Disabled
Something I left out of yesterday’s video discussion :
"Universal’s new move is the second time in 16 months that Mr. Morris has shaken up the sluggish recording industry by upsetting established practices. In 2003, Universal said it would slash its suggested retail prices by almost one-third in a bid to breathe new life into CD sales. The price cut drew catcalls from many small retailers that felt their margins being squeezed, but company executives said the pricing plan had been a success, noting that Universal’s album sales jumped about 7 percent last year, beating the industry’s overall increase of about 1.6 percent."
Let’s review: a product widely considered to be over-priced, primarily due to industry price-fixing, sees a significant increase in sales when pricing moves towards a more competive schema.
Indeed, Universal is the label with the most aggressive pricing policy, and they see a sales increase nearly 400% greater than the rest of the industry.
Can anyone on the West Coast figure out how much 2 + 2 is?
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URL to article: http://www.ritholtz.com/blog/2005/02/universal-sales-increase-outperforms-industry-by-400/
URLs in this post:
 yesterday’s video discussion: http://bigpicture.typepad.com/comments/2005/02/universal_pay_u.html
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