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March 18, 2009

In Search of the Golden Price Point [7:36 am]

Digital retailers cut prices to lure CD buyers (pdf)

As the music industry watches in horror while physical CD sales tumble and digital sales fail to bridge the gap, online MP3 retailers are trying to stem the bleeding with an age-old technique: slashing prices.

[...] Cheap just may be the answer. Former illegal file-sharer Jungmann was often dissatisfied with what he found in the peer-to-peer world of Napster and Kazaa. “It didn’t have the sound quality,” he says. Besides, he says, laughing, “It’s too much work to steal stuff.” And that should really be music to the industry’s ears.

Not only embracing the model, but also the rhetoric — what more could they ask for?

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