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Universal Records Slashes Cost of Downloads

by Staff Writer

This is brilliant news - hopefully other labels will follow suit to remain competitive, but of course it does depend on the online services following through:

Universal Music is slashing European download prices for some of its older albums, the first broad online cost-cutting move by any of the four major music companies reports Reuters.

The world’s largest seller of recorded music said on Monday that starting November 1 it would reduce the prices it charges online retailers for 1,500 albums ranging from The Who’s “Quadrophenia” to R.E.M.’s “Reckoning”.

The prices ultimately charged consumers will be determined by individual online services, Universal Music said, though a spokesman added that the response has been encouraging.

Broadly speaking, the albums in the programme, including ones from The Cure, Dusty Springfield and Buddy Holly, are expected to sell for about 6.99 euros ($8.89) and 5.49 pounds ($10.43), reduced from 9.99 euros and 7.99 pounds, respectively.

Download pricing of singles, which has been a sticky subject between music companies and Apple Computer Inc. and its market leading iTunes music store, will not be affected.

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Posted in News on October 30th, 2006

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