Monday, October 16, 2006

Wal Mart vs. the RIAA

You're gonna like Wal Mart. No matter how you feel about them now - read on - and like them more as you go.

Wal Mart sells CD's of recorded music @ $10 and under. The music companies and the RIAA have complained about Wal Mart to the Feds for years. Wal Mart was accused of "price fixing."
To punish Wal Mart for their behavior, the record companies withheld promotional items. This is why you don't see giant cardboard Britney Spears stand-ups at Wal Mart. You won't see posters of Outkast at Wal Mart. Wal Mart didn't flinch. They see CD's as a "loss leader", meaning they'd rather draw you to their stores with value priced music, and profit from your other sales. Besides, Wal Mart argues it's hard to charge $10 for 50 minutes of music, when most DVD's are $15 and provide over 3 hours of entertainment. Hard to argue.

The record companies have finally conceded that they need Wal Mart more - than Wal Mart needs them. Their own studies indicate that CD sales will fall dramatically if Wal Mart drops their product. This is forcing the record companies to reconsider CD pricing overall. It looks bad when the record store has a CD at $17.99 - and down the street Wal Mart has it for $9.99.

The profiteering in the music business is over. Once and for all - it's over. Musicians will make their money the old fashioned way - at live concerts - and make just cents per CD - like it was in the old days.

PTP computer programs and Wal Mart are to thank. The days of $17,99 for a CD with 2 good songs - are numbered.