Top 5 Amazon Music Sellers Are Under $10

Monday, January 22, 2007 | 07:30 PM

File this one under it ain't no coincidence: 

It has long been my argument that the recording industry mispriced CDs long after they first introduced them at much higher prices. While most of technology/entertainment products have come down in price dramatically, the Recording Industry has tried desperately to maintain their higher pricing, lower unit sales model -- despite the marketplace's rejection of it.

The industry did not respond to competition from DVDs, or Video Games or the Internet. The industry denies pricing is an issue, blaming piracy, downloading, CD burning, mixed DJ tapes, even boy bands -- anything but their broken old school pricing model.

So it makes me ask this question: Can anyone in the industry explain to me why the top 5 bestselling CDs on Amazon.com are all well under $10. Some are even $6.99!

And don't blame the Boomers; They tend not to be all that price sensitive on small purchases (See Starbucks $15.99 CDs as an example), and besides, Norah Jones and The Beatles are the only real Boomer fare in this short list

Consider these CDs:

1. Not Too Late, Norah Jones
Norah

2. Begin to Hope, Regina Spektor
Regina

3. Wincing the Night Away, The Shins
Shins

4. Corinne Bailey Rae
Corinne

5. Love, The Beatles
Love

In the top 10, there is but one disc priced over $10 (11.99) -- every thing else is $10/per CD (Or 20 per double disc);  There is 2 in the top 15, and  as you work you way down the list, the higher the price, the weaker the sales (more or less)

Quite frankly, I doubt this is a coincidence. If anything, I suspect it reveals that CD purchasers are increasingly price sensitive, given all of the competing entertainment outlets and technologies 

Monday, January 22, 2007 | 07:30 PM | Permalink | Comments (12) | TrackBack (1)
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» Classical Music: Economics meets the Long Tail from The Big Picture
We have in the past, looked at the Long Tail of music and digital media. I have been particularly interested in the impact of pricing on the Long Tail. (see this as a specific example: Are CD Prices Getting More Dynamic?). The Long Tail, by its very na... [Read More]

Tracked on Mar 20, 2007 5:38:44 AM

Comments

Of course. Which is why people will repeatedly join and unjoin clubs like BMG. They can get their 10 CDs for a buck plus ~$3 shipping and handling buy the required 1-4 CDs. Quit and start the process over.

Posted by: Sedge | Jan 22, 2007 9:05:47 PM

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