France's Vivendi Universal, the world's largest record label and a member of the Big Four Organized Music gang, believes it has at least a partial answer to p2p file sharing:
Get music lovers to buy more CDs by pricing back-catalogue CDs like download versions.
Starting in September, Vivendi 's Universal Music Group is, "rolling out three new tiers of CD packaging in Europe, ranging from lush deluxe editions down to bare-bones cardboard sleeves that are designed to compete with albums sold online," says Reuters.
"Despite the hype about online music stores like iTunes, the huge majority of music is still sold on CDs, usually inside the 'jewel boxes' that have been around for decades."
Indeed, CD collections are still the primary source of content with music downloaders, says a recent study which states:
"Nearly half (44%) of the content stored on MP3 players is ripped from the owner’s personal CD collection, and another 6% is ripped from others’ CD collections."
The most significant change in Vivendi's latest marketing scheme, "is the introduction of a 'basic' CD for older recordings". The company will, "wrap the album in a card case with no sleeve notes," says The Guardian Unlimited.
"Universal expects the basic CDs, which it calls the record equivalent of paperbacks, to sell for €9.99 (£6.92, about $18.38) - in line with the average cost of a chart album download. More than 3m 'basic' albums were sold when Universal tested the format on European markets last year."
The story has Max Hole, executive vp of marketing and A&R at Universal's international division, saying, "There are lots of really good signs that the industry has a future thanks to digital, but we must not lose sight of the fact that 90% of what we sell is physical goods. For over 20 years we have been selling the same standard package."
Vivendi expects the "deluxe CDs" to sell for an average of 19.99 euros ($25.61), "the standard for 14.99 euros and the basic for 9.99 euros," says Reuters, adding:
"The basic package will be used to stimulate sales for catalog albums that have been on sale for a while, 'similar to a paperback book,' Hole said.
"Universal Music expects digital sales to double to about 10 percent of its sales this year, with digital making up 25 percent of revenues by 2010."
Does this mean Vivendi will soon drop out of the Organized Music cartel and abandon the practice of trying to sue its own customers into buying grossly over-priced, low quality digital downloads?
And will it now sell CDs which aren't polluted with Customer Control DRM systems?
Don't hold your breath.
Also See: Reuters - CD format gets a "reboot" from Universal Music, July 5, 2006 recent study - CD rips main mp3 player content, June 29, 2006 The Guardian Unlimited - Universal prices CDs to match downloads, July 5, 2006
