Universal lowers CD prices

Universal Music Group is taking the bull by the horns. It announced a policy to lower the price of its CDs to $10 or less. The company wants to kick start the CD market which has been on the downslide for many years since the advent of MP3 players, online stores and piracy.

This new pricing policy will see the profit from an individual CD drop and not exceed 25 cents. But an increase in the overall sale of CDs should provide a counterbalance the loss per unit.

This announcement has made retailers happy because it should not affect their own profit margin.

Universal’s decision follows one made by Trans World Entertainment. After implementing this test pricing policy, that company has seen its sales increase by 100%.

Universal Music Group has artists like Lady Gaga, Black Eyed Peas and Jay-Z on its roster, to name a few.