File this one under it ain’t no coincidence:
It has long been my argument that the recording industry mispriced CDs long after they first introduced them at much higher prices. While most of technology/entertainment products have come down in price dramatically, the Recording Industry has tried desperately to maintain their higher pricing, lower unit sales model — despite the marketplace’s rejection of it.
The industry did not respond to competition from
DVDs, or Video Games or the Internet. The industry denies pricing is an issue, blaming piracy, downloading, CD burning, mixed DJ tapes, even boy bands — anything but their broken old school pricing model.
So it makes me ask this question: Can anyone in the industry explain to me why the top 5 bestselling CDs on Amazon.com are all well under $10. Some are even $6.99!
And don’t blame the Boomers; They tend not to be all that price sensitive on small purchases (See Starbucks $15.99 CDs as an example), and besides, Norah Jones and The Beatles are the only real Boomer fare in this short list
Consider these CDs:
In the top 10, there is but one disc priced over $10 (11.99) — every thing else is $10/per CD (Or 20 per double disc); There is 2 in the top 15, and as you work you way down the list, the higher the price, the weaker the sales (more or less)
Quite frankly, I doubt this is a coincidence. If anything, I suspect it reveals that CD purchasers are increasingly price sensitive, given all of the competing entertainment outlets and technologies