Universal Sales Increase Outperforms Industry by 400%
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?

1 Comments:
ist also the only music company run by an A&R man rather than a marketing bod. good article in the observer -
http://www.guardian.co.uk/business/story/0,,1406543,00.html
dont want to believe too much hype but universal does seem to breaking more new artists too at the moment.
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