Tuesday, March 04, 2008

Wal-Mart

"According to sources, the Wal-Mart proposal would allow for a promotional program that could comprise the top 15 to 20 hottest titles, each at $10. The rest of the pricing structure, according to several music executives who spoke with Billboard, would have hits and current titles retailing for $12, top catalog at $9, midline catalog at $7 and budget product at $5. The move would also shift the store's pricing from its $9.88 and $13.88 model to rounder sales prices."
Wal-Mart Article

Say what you will about Wal-Mart and their strong-arm business tactics, but I think this is a great idea. Its about time someone realizes that the market isn't really bearing $15 CD's. Personally, I would be much more willing to purchase a CD if it was under 10, compared to downloading (stealing) it if were 15 bucks. Although this will probably hurt local record shops, but they've been pretty much fucked since the advent of the internet.

4 comments:

teddytoothtaker said...

Wal-Mart can choose to lower its prices luring customers in to the store and hoping they also buy other items. They actually lose a profit on CD's but more than make up for it by other things that customers buy when they shop there. What Wal Mart chooses to stock can basically determine if major labels have a hit. Wal Mart only stocks about 5,000 cds in each store compared with about 60,000 in your average tower records which doesn't leave much room for emerging artists and independent labels. This means less of a choice for the consumer. And the few remaining record stores are taken over in the same way that Wal-Mart has taken over countless retail stores all over the world. They also ban many music genres like many Hip Hop and Rock and Roll titles claiming the music promotes "adultery, alcoholism, drug abuse, necrophilia, bestiality" They won't sell an Eminem album but will sell a 50 Cent album? What kind of shit is that? All of this probably doesn't really matter much to me because I haven't been in a Wal-Mart in five years and download most of my music illegally anyway. Wal Mart accounts for about 25% of major labels album sales but its only 2% of Wal Mart's total sales. If Wal Mart decided not to sell music it wouldn't matter that much to them but major record labels would be fucked so they are forced to comply because they need Wal Mart to stock their product.

Dubb said...

L minored in Wal-Mart operations at St. Cloud. And also worked there for 5 years, which he's on record, by the way, of saying were the best of his life.

hugelush said...

2% of walmart's annual sales is $2.6 billion

Anonymous said...

Fuck Wal-Mart, Fuck the record companies.