Audio Video News

One of the four largest music labels plans to test a new pricing scheme that will slash list prices on all single discs to somewhere between six and ten dollars.

The Universal Music Group plans to implement the under-$10 plan in the second quarter and will continue it almost to year-end. Retailers will still get a health 25 percent discount. To coax consumers into paying more, the label will also offer more deluxe editions with extra features.

Of course all the majors have offered discs at these prices for years with strong discounts for back catalogue. What makes Universal's latest move unusual is that it will affect "front line" releases as well as old stuff. Universal may be reacting to a similar test by Trans World Entertainment which bumped prices for large and small label releases down to $10 and experienced a unit sales increase of more than 100 percent.

Another interesting thing is that Universal will be offering major releases on disc for less than the cost to download the same albums. Download retailers will retain one significant edge: They can sell single tracks (unless forbidden by contract).

See Billboard.