Wal*Mart Proposes Tiered CD Pricing Plan
Wal*Mart on Tuesday announced a new pricing model of CDs that has the potential to shake up, once again, the way music is bought and sold. According to Billboard, the retail giant has proposed a five-tiered pricing system for CDs, the chain would sell the top 15-20 most popular albums of the week for $10, with other new titles going for $12, and catalog titles selling for $7 or $9, depending on popularity. The bottom price would be $5.
In addition, the proposal would drop the $.99 and $.88 figures and sell the albums at round-numbered prices.
The plan is not official is subject to negotiations with the music industry. Wal*Mart, with a 22 percent market share, is the #1 seller of music in the U.S., although Apple’s online iTunes music store is gaining on it fast.