Wal-Mart Squeezing Record Labels to Cut CD Prices

Raindance writes "RollingStone.com has a revealing article detailing how retail giant Wal-Mart is making loud noises about throwing its weight around in order to get significantly better bulk prices on CDs. Says one industry executive, 'This wasn't framed as a gentle negotiation, it's a line in the sand -- you don't do this, then the threat is [your product is dropped].' This is the first time a big player has attempted this sort of hardball move on the labels, and the labels may be forced to deal, as Wal-Mart sells 1 out of every 5 retail CDs. Monopoly one, meet monopoly two."

Well, what do you know?

[gpinzone]

Two wrongs sometimes do make a right.

Huh?

[BigIrv]

Which one am I supposed to ridicule?

Evil Empire 1

[CountBrass]

meet Evil Empire 2.

Make it difficult to know who to BOOOOH! at!: Ugly Sister 1 (speciality: cutting wages to the bone and destroying local stores) or Ugly Sister 2 (speciality: suing young children and pensioners).

When titans clash

[Weaselmancer]

It's kind of like being a mouse watching two professional wrestlers fighting over a hoagie.

"Ooo look! Crumbs!

Lets get ready to rumble......

[bblazer]

In the blue corner we have a gorilla weighing in at 600 lbs! The Recording Industry!!!!! In the red corner we have another gorilla weighing in also at 600 lbs!!!! Wal-Mart!!!! Announcer1, "This bout is expected to go the full 15 rounds and the odds makers are expecting a split decision that will just end up costing every one more money one way or another." Announcer2 "Yes, but we have seen a lot of this pre-fight hype before."

Wal-Mart is a horrible monopoly

[Anonymous Coward]

Did you know that only wal-mart can sell products in wal-mart stores? That?s right. Only wal-mart can sell products in wal-mart stores. 100%. And you know what else? 100% of wal-mart's profits go just to wal-mart! Can you believe that? All 100% of wal-mart's profits go to wal-mart. Something must be done!

Re:My eyes are filling with tears for the labels..

[Anonymous Coward]

Walmart that was at least 10 times over capacity

Walmart has a monolopoly on the Third dimesion. If my house could store 10 times its capacity than I would be rich as them. Those b*s!e^#s having a monopoly on such a comondity - it should be FREE!

*DOES NOT COMPUTE*

[hcob$]

I hate Walmart's Business practices...
I hate the RIAA's price fixing...
I like cheaper music prices....


*Head explodes from the logical paradox*

Re:My eyes are filling with tears for the labels..

[SQLz]

And if you don't like Wal-Mart, don't shop there. Your personal experience isn't exactly scientific proof that Wal-Mart sucks, there are plenty of people (myself included) that shop there because the employees on the whole are friendly and because their prices are incredible.

Incredibly priced dog shit is still dog shit.

Re:Good

[AEton]

Great!
CD prices are down!
CD sales are down!

(Clearly it's due to piracy. [slashdot.org] - whatever will we do?)

Re:My eyes are filling with tears for the labels..

[linzeal]

When someone on Slashdot admits he is wrong, a geek loses his virginity. God bless America!

Re:Walmart could kill the music industry

[dykofone]

My god man! Keep quiet, if Walmart became a record label, it'd destroy every last shred of hope for decent music in the world as we know it. I can see it now, they'd turn to radio stations and say "pay us a ridiculous amount of money to play our songs, or you won't get to play any of our #1 hits, of which currently take up the top 40."

Suddenly, radio stations are folding because they can't afford to pay the Walmart prices, Clear Channel has to start playing independent bands selected by live DJ's, and the only place you'll hear the Britney Spears is at her live concert in a Walmart parking lot.

Wait, nevermind, that's a great idea! Get Walmart into the music industry ASAP!

Re:Why CDs are $15.99

[HarveyBirdman]

$0.17 Musicians' unions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists' royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead

Getting the album for free off the internet? Priceless. :-)

Re:Good!

[WormholeFiend]

Demolition Man [imdb.com] predicts that Taco Bell will win the Franchise Wars.

Re:Monopoly powers evening each other out...

[freqres]

So we just need to find a way to turn Walmart agains Microsoft and watch the explosions and carnage the ensues. Smiley the price slasher vs. MS Bob and Clippy?

Re:My eyes are filling with tears for the labels..

[atta1]

Personally, I can't believe that 1 out of 5 CDs are sold in Walmarts.

and they aren't someplace that I want to shop for music as it's just usually a mess and full of people.

This statement is the same as "Nobody ever eats there, it's too crowded".

Re:As my mummy always said...

[Suidae]

Wal-Mart basically forced Vlasic to make the big size containers with more pickles in them than most humans should eat within a reasonable amount of time

Yes, maybe they could preserve them somehow, like.. maybe they could.. pickle them...

Re:My eyes are filling with tears for the labels..

[idamaybrown]

Well, your not doing a very good job of discouraging people from shopping there. It's always busy when I shop there ;)

Re:My eyes are filling with tears for the labels..

[Oliver Wendell Jones]

Incredibly priced dog shit is still dog shit.

Sure, but if you ever have a need for dog shit, why should you have to pay full MSRP?