BMG Innovates! Offering Tiered CD Pricing

from the shocking dept

Adam submits this story that somehow slipped by without much notice earlier this week about how BMG is going to test a tiered CD model in Germany this summer. In realizing that part of the reason people download is because they believe CDs cost too much, they're trying to break down the value of the CD into different components. Thus, you can buy a "no frills" version of the CD (which will just look like a burned copy, with the name of the musician and the title printed on the CD) for 10 euros. A mid-level CD of the same music that will include a cover and an insert with lyrics will run 13 euros, and the "luxury" version of the CD, complete with additional material and video clips on the CD will run 18 euros. Even BMG admits they have no clue whether or not the plan will work, but they can't come up with a good reason not to at least try it. The prices still seem a bit high, but it's the first sign I've seen that the industry realizes that they have more to sell than just the music itself -- and that, alone, is a very very small step in the right direction.

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