From: t-bird (djtbird1@yahoo.com)
Date: Wed Dec 04 2002 - 21:10:18 CET
"We believe our policies were pro-competitive and
geared toward keeping
more
retailers, large and small, in business," Universal
said in a
statement.
Previously, the companies said that MAP was needed to
protect
independent
music retailers from rising competition from discount
chains such as
Wal-Mart, Circuit City and Best Buy. They had slashed
CD prices, below
cost
in some cases, in the hope that once consumers were in
their stores
they
would buy other, more expensive products.
The music companies said that MAP did not directly
help them because it
didn't affect wholesale prices. Retailers added that
they needed
support to
keep prices up because their rents, particularly for
stores in malls,
were
higher than the discount chains.
Lately, several record companies have cut prices on
some CDs,
particularly
for new acts, to counter the continuing industry
slump. Album sales are
off
nearly 11% this year compared with the same period in
2001, according
to
Nielsen SoundScan.
-------------------------------------------------------
as a manager of a store in a small retail chain (i'm
actually writing this while i should be
vacuuming--oops!) i have to say that the contention
above about "protecting" is accurate. why should
someone spend $16.99 at my store for the new bruce
springsteen/madonna/norah jones cd when they can go a
mile away and get it for $12.99? us being "cooler"
doesn't work for a lot of people--and some of them are
friends! what am i supposed to do, browbeat them into
shopping at my store when the prices down the street
may be better on the cds that are getting them to
leave their house? the discount places can afford to
sell popular cd titles for what my wholesale cost is.
lately, they've been bringing the prices of certain
artists--it makes my life a lot easier. however, if
they allow best buy to sell stuff at cost, i'm in the
same position...
-t
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