In a move that may be as much of a response to music piracy as to legitimate music download services, Universal Music will be slashing the suggested retail price of its CDs and cassettes. The suggested retail price of most of Universal's top-line CDs will fall to just under $13, and wholesale prices will also be reduced. Previously, the suggested retail price of some of Universal's CDs was as high as $19, so the price cuts are potentially quite dramatic.
I'm sure casual music traders scared off peer-to-peer networks by the RIAA's latest wave of subpoenas will be happy to see lower CD prices, but I'm a little under whelmed. Maybe it's the fact that I live in Canada, but I've never paid more than the equivalent of $13 for a single-disc new release. Heck, I've bought most of the double CDs in my collection for less than $19US. I can't imagine that major labels have dramatically different wholesale CD pricing for Canada and the US, which means that American CD retailers probably have a lot to do with higher CD prices.
News source: The Tech Report
