CDs or DVDs: 2 for $25

Tuesday, March 30, 2004 | 06:45 AM

altitunes_logo.jpg

Altitunes is a Music retailer located almost exclusively in airports. Not exactly the most competitve of retail spaces -- captive audience and all that.

The one non-airport location is Grand Central Station -- right across from my office. I walk by it a few times aweek. Their latest promotion is 2 CDs or DVDs for $25.

This may not be the best pure sale prices -- Target regularly runs $7.99 CD and $9.99 DVD sales, and this week, Best Buy is advertising a "3 DVDs for $20 sale."

But it points out an interesting conundrum facing the music industry: The competitve pressures they have been facing from the Film industry are actually increasing.

If DVDs -- with 2+ hours audio/video, plus many extra features, interviews, fan items -- can be sold at the price point of 3 for $20, then why can't CDs? Even if the BestBuy promotion is a loss leader (I'm not sure it is) -- there is something unequivocally broken about the CD pricing model.


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Tuesday, March 30, 2004 | 06:45 AM | Permalink | Comments (0) | TrackBack (1)
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Listed below are links to weblogs that reference CDs or DVDs: 2 for $25:

» Does the Entertainment Industry Get It? from BusinessPundit
Barry Ritholtz has a nice pair of posts on Atlitunes, which rents CDs or DVDs, and DVD station, which rents DVDs for a buck. Maybe... [Read More]

Tracked on Mar 31, 2004 7:27:34 AM

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