As digital music downloads continue to cut into ever-waning CD (and physical media in general) sales, major labels still have some serious marketing decisions to make. About a decade too late, it looks as though Universal Music Group is finally realizing its current pricing on CDs is out of sync with the times and has plans to test a new pricing structure that will put CDs in the price range of $6 to $10 beginning in the second quarter of 2010, according to Billboard. This will be especially good for consumers if UMG can drag other major labels along with them, forcing more competitive pricing across the board.
“We think [the new pricing program] will really bring new life into the physical format,” says Universal Music Group Distribution president/CEO Jim Urie. Maybe he’s joking.