Been pretty busy lately, but I've had a few things queued up that I've been meaning to post.
Wal-Mart has drawn a line in the sand, and told music labels that if their CD prices don't go down, they may just stop carrying them. Wal-Mart likes to sell CDs for under $10 (and, hey, we like buying them for under $10), but up till now Wal-Mart takes a loss whenever it does that (since CD distributers cell them for over $12 a pop). They're tired of doing that. The situation is pretty uncomfortable for the record labels, since they need Wal-Mart sales much more than Wal-Mart needs to carry CDs.
"If they got out of selling music, it would mean nothing to them," says another label executive. "This keeps me awake at night."
The
article at Rolling Stone is worth a read for, if nothing else, the breakdown of a CD's cost at the end of the article.