Gizmo Cafe Blog

Apple iTunes Reportedly Behind Lower CD Prices

Ever take a moment to ponder the current price of music CDs?  Back when I was in high school, perusing Music World, HMV, and Sunrise aisles for Smashing Pumpkins and Foo Fighters records, compact discs generally ran from about $13 to $25 (for older, less in-demand stuff).  It meant that each purchase, especially for a poor grocery store employee, was a careful one.  It’s also part of the reason so many young people latched onto the peer-2-peer phenomenon, and continue to use other shady networks, like Bit Torrent.

Without a doubt, the cost of music CDs, to consumers at least, has dropped.  In an inflation-mad world, that’s a rarity, and cause for pause.  Why are they so cheap?  Is it to resurrect the file sharers’ music budgets?

Maybe.  But, a recent report has indicated that Apple is a major part of the reason for the $9.99 CD.  One unnamed record executive has pointed to the the iPod maker and, more importantly, iTunes creator, as the primary reason for the plummet in CD prices.

According to the source, “The biggest thing driving prices to $9.99 is iTunes.  Physical retailers are pressuring the labels downward on price…because they don’t want to be undercut by iTunes”.

The lowering in prices is certainly a pleasant trend.  Considering the superior sound quality of CDs versus iTunes downloads (generally 320 kbp/s versus 128), retailer price matching might just make a return to the jewel case worthwhile.

Shop Now for Apple iPod

Published Thursday, February 15, 2007 10:01 AM by Brando

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Wealthy Geek said:

I can’t understand why ‘older, less-in-demand’ CDs are actually more expensive not less. Does this not violate the laws of supply-and-demand economics? Why should I pay $25 for the copy of Greetings from Asbury Park that’s been sitting in the same place at the CD store since Springsteen had butt acne?

I’m assuming these rules don’t apply to the bargain bin, where you can find all those bastions of 80s wuss-rock, like Hall & Oates and Billy Ocean, for less than ten bucks.

Cool story at any rate, Brando. I also heard that, 100 years ago, the horse-and-buggy sector dramatically lowered its prices to compete with the car.
February 15, 2007 11:26 AM
 

modsuperstar said:

The price of back catalogue music has always been a sticky point for me.  The music stores basically have you over a barrel if you want to buy these albums because they are in limited supply.  The labels do runs of albums, like you would books.  Once the initial run of a CD is done the labels won't typically reprint the album unless there is a large amount of demand.  For older albums typically the demand isn't that strong, so the record stores are left with these albums filling the shelves.  While you would think that the store would want to clear it out, they in fact do the opposite.  They know that the only people who will buy old albums are the compulsive collectors who need an old album for their collection, and will often pay whatever the store asks to get it.  It's like a music geek tax.
February 15, 2007 2:42 PM

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About Brando

Brando's been gaming a long time. From Atari to NES to Genesis to, sigh, Game Gear, to PC to N64 to PS1 to Xbox to PS2 to Xbox 360, he's wasted a lot of time. But, isn't that the meaning of life?