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Old 03-25-2008, 01:55 PM
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hot_turkey_ed hot_turkey_ed is offline
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Rolling Stone: Walmart Wants $10 CDs

Source: Rolling Stone

Rolling Stone is reporting on Walmart's efforts to lower the prices of CD and it's got the music industry a little scared.

While Wal-Mart represents nearly twenty percent of major-label music sales, music represents only about two percent of Wal-Mart's total sales. "If they got out of selling music, it would mean nothing to them," says another label executive. "This keeps me awake at night."

The article talks about what various price points mean to various size music shops. It also comments on Walmart's typical inventory: 5000 titles vs the 60,000 of a lot of music shops.

Lastly, check this out: This breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail shows where the money goes for a new album with a list price of $15.99.

$0.17 Musicians' unions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists' royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead


One has to wonder Walmart's role in the metal market. Hell, can you even FIND metal at Walmart?
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