P1 Music Blog

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Wal-Mart Demands Low Prices……Even Music

Posted by ducks4days on April 29, 2008

As America’s largest music retailer, Wal-Mart is threatening to stop selling CDs if the major labels don’t start slashing their CD prices. The superstore is demanding the major labels lower wholesales to the point that Wal-Mart can profitably sell “hit” albums for $10 to $12, “popular catalog” titles for $7 to $9, and “budge” albums for $5.

Wal-Mart currently draws in 127 million consumers a week, accounting for 16 percent of today’s domestic music sales. If the major labels give in to Wal-Mart’s threats, it will cost them tens of millions in profit margins a year. Wal-Mart denies making such threats.

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