Thursday, August 01, 2002

Retailers cut costs Will Cox sent me a pointer on how retailers and labels are cutting CD prices, while the RIAA argues against it. This price competition is bad for the industry, but good for consumers, and shows how the recording companies are beginning to break rank and undercut each other after years of successful collusion. More interestingly, labels are using discounts to push new acts. If the CARP web radio ruling had set its rate as a maximum, labels would similarly undercut each other by promoting new music online. Update It looks like one Indie label is waiving the fee, but forcing labels between choose between charging the full fee or charging zero reduces competitive pressure.


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