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The under-$10 CD is on its way

Locally, used CDs sell for more than this. Like literally: $12-15 seems to be the price-point for them. This article suggests that Universal Vivendi is undercutting this pricepoint:
"Our research shows that the sweet spot is to sell our records below $12.98," said Universal Music President Zach Horowitz. "We're confident that when we implement this we will get a dramatic and sustained increase."
I'm less concerned with how this will affect online piracy, and more concerned about the imminent death of the secondhand CD industry.
  • In SoCal, used CDs go (went?) for $7-12 or so, so I think the cost up by you may be anomalous. ;) Presumably, if the cost of new goes down, so will the cost of used. We'll see. :)
    • Up here, the rillybigstore leases a high-rent storefront on Haight Street that's absolutely huge. If their pricebreak suddenly drops from $15 to $10 or less, that means they'll either be flooded with used CDs, or they'll be starved. Either way- they'll have a harder time of it, and not be turning over money like they used to.
      This is assuming the pricebreak stays, and that it spreads past Universal, mind you.
  • Keep in mind regular CDs get marked up insane amounts. production costs, including artist royalties, distribution, etc., is supposedly something under two dollars. that's why selling a CD for $18-20 is so ridiculous.

    when I worked in a used CD store, we bought CDs for 50 cents to a dollar and marked them to 8-9 dollars. dropping those used CD prices down even a dollar wouldn't hurt that store very much.

    I don't think used CDs will go away, some stores might be hit a little hard. but they won't go away and it likely won't affect them *too* much. They might move more stock if people start buying CDs again, so it's hard to say if it will be that dire.
  • I used to buy new cds for $10 and less all the time back when I lived in a college town that had several competing music stores, back before they jacked up the prices to $18 or so. Granted I was mostly buying older stuff, but even so, I was able to get some new cds as cheap as $6. Even up through 1994, Best Buy used to sell every 'normal' cd (i.e. not a double-album or an import) for $11.99 or less. And even so, I also went to a used cd store where you could get 3 for $25 or 4 for $30, and they did a booming business.

    Cd prices have been obscenely high for far too long now, and it's about time they come back to sane levels. The second-hand market will adjust to compensate; I recommend selling off your used cds now before the price drops.
  • Used CDs tend to $5 to $10, as far as I know.

    And what shocked me recently was learning that CD prices have only risen since they were first introduced. If you compare that to DVDs, or digital cameras, or scanners, or other such stuff, they start expensive and then prices drop as they become normal and widespread. CDs seem to have started expensive, and then become more expensive as they became the norm.
  • Here in the Cleveland Metro area, we have "CD/Game Exchange" stores. They accept used CDs for store credit, and sell them for as low as 50 cents. The 50 cent CDs are usually singles. Then there is the slightly scratched $1.00 level, the less scratched $2.50 level, the just needs cleaning $5.00 level, on up. Of course, these are not the 'in demand' titles. I think I've seen a copy of Kriss Kross - Da Bomb in almost every cheap section in almost every store. But you can pick up the occassional gem.
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