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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  • identicon
    Saygin(?), 9 Jul 2004 @ 8:26am

    You're right

    Absolutely a great plan. But the price is way too high. What about a plain CD for 4 or 5 euros?

    reply to this | link to this | view in chronology ]

    • identicon
      wbedard, 9 Jul 2004 @ 12:55pm

      Re: You're right

      At first glance, the price does seem a bit high. However, when you figure that you're getting the songs (typically around a dozen / album) for less than $1 apiece, it starts to sound a bit more reasonable. Now, whether people would even give $1 for most of the songs on said album is another matter altogether!

      reply to this | link to this | view in chronology ]

      • identicon
        Anonymous Coward, 10 Jul 2004 @ 12:55pm

        Re: You're right

        If only 1 out of 10 songs on an album is worth buying and the rest are essentially filler, then it becomes 10 euros per song. Still way too high pricing.

        reply to this | link to this | view in chronology ]


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