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Blank CD Just Get Cheaper
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-02-28
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I noted in last Friday's editorial that outside of the initial investment in a burner-equipped PC & broadband connection, the incremental cost for a consumer to manufacture their own customized recorded CD was the price of a blank CD & investment in time. And while the music industry attempts to make money by providing easy-to-use, feature-rich subscription services, Memorex' announced price realignment for its blank CD products indicate the level to which media burning has entered the mainstream.

"The CD recordable media market has matured, and it is time for pricing to stabilize," noted Michael Golacinski, president and CEO for Memorex, which holds the leading market share in the CD recordable category. The company's new pricing policy will eliminate consumer rebates that are "too complex and very confusing" in favor of simpler, lower retail prices for its in 50- and 100-pack CD-R media spindles.

In addition to further lowering the cost of burning, falling blank media price decreases, which are likely to be followed by other manufacturers, may increase consumer perceptions that recorded CDs are overpriced. "We anticipate that this action also will provide retailers with more consistent volume sales." Music industry executives certainly hope not, though, they may want to follow Memorex' cue in the hopes of achieving something other than lower volume CD sales.

Related News from Mi2N:
» Memorex Announces Price Realignment Program For CD Blank Media


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