Wal-Mart stickin it to the RIAA, well kinda

by **Ldsmith104** » Sun Oct 22, 2006 6:23 pm

Wal-Mart battles for $10 CDs

17 October 2006 9:04 by Lethal_B
Wal-Mart battles for $10 CDsWal-mart, the United States' biggest retailer, wants every CD you buy to cost no more than ten dollars. The company, which moved a quarter of a trillion dollars' worth of goods last year, is used to getting its own way.

The store, which boasts 138 million shoppers per week, sells an estimated one in every five major-label albums. Insiders believe that it has so much power, that what it chooses to stock can basically decide what ends up being successful. "If you don't have a Wal-Mart account, you probably won't have a major pop artist," said one label executive.

Wal-Mart willingly loses money selling CDs for less than $10 to lure consumers into the store, hoping they might also pick up a DVD player or a boombox whilst inside.

But now, Wal-Mart is fed-up of losing money on its cheap CDs. It wants to keep selling them at the current price ($9.72), but it wants the recording industry to lower the prices at which it purchases them ($12) in the first place.

Last year, Wal-Mart asked the industry to supply it with choice albums at favorable prices. According to music-industry sources, Wal-Mart executives hinted that they could reduce Wal-Mart's CD stock in favour of more profitable DVDs and video games. "This wasn't framed as a gentle negotiation," said one label rep. "It's a line in the sand -- you don't do this, then the threat is this." (Wal-Mart strongly denies these claims.) As a result, all of the major labels agreed to supply some popular albums to Wal-Mart's $9.72 program. "We're in such a competitive world, and you can't reach consumers if you're not in Wal-Mart," admitted another label executive.

It is in the best interests of the music industry to keep Wal-Mart happy, because if Wal-Mart cut back on music, industry sales would suffer severely, but hardly affect the retail outlet. While Wal-Mart represents nearly twenty percent of major-label music sales, music represents only about two percent of Wal-Mart's total sales. "If they got out of selling music, it would mean nothing to them," explained another label executive. "This keeps me awake at night."

Gary Severson, Wal-Mart's senior vice president and general merchandise manager in charge of the chain's entertainment section, said "The labels price things based on what they believe they can get -- a pricing philosophy a lot of industries have.

"But we like to price things as cheaply as we possibly can, rather than charge as much as we can get. It's a big difference in philosophy, and we try to help other people see that."

One major-label rep is reported to have said, "I don't think there is a music supplier in America who really enjoys doing business with Wal-Mart."

http://www.afterdawn.com/news/archive/8029.cfm

by **[ecgn] btt** » Sun Oct 22, 2006 6:29 pm

Why can't they start selling gas.

I would never buy a CD from Wal-Mart. Unless they open an adult section.

by **Evan** » Sun Oct 22, 2006 6:33 pm

Sweet. More people should stick it to the RIAA.

by **King** » Sun Oct 22, 2006 6:36 pm

more people need to stick it to walmart so they actually pay their employees a decent wage.

by **Ldsmith104** » Sun Oct 22, 2006 6:55 pm

Originally posted by King
more people need to stick it to walmart so they actually pay their employees a decent wage.

They can always go work somewhere else. No one is making them work there

by **King** » Sun Oct 22, 2006 8:10 pm

its the only job they can get if Wal-mart opens up a shop in every small town and under-prices every mom and pop shop in town. The options become a little limited after that.

by **gowhitesox99** » Sun Oct 22, 2006 8:34 pm

limewire is free

by **.:DeM:.8-Mile** » Sun Oct 22, 2006 9:48 pm

Originally posted by [ECGN] BTT
Why can't they start selling gas.

I would never buy a CD from Wal-Mart. Unless they open an adult section.

lol over where i live wal-mart has its own gas station and its cheap.

by **Namloot** » Mon Oct 23, 2006 12:27 am

I won't shop in a Wal-Mart.

by **Ldsmith104** » Mon Oct 23, 2006 1:18 am

Originally posted by [ECGN] BTT
Why can't they start selling gas.

I would never buy a CD from Wal-Mart. Unless they open an adult section.

Actually they do sell gas...And if they sold 25% of the gas sold in the US they could demand the same thing...

by **Major SONAR** » Mon Oct 23, 2006 8:08 am

I used to shop at Walmart, but lately I've stayed away (and I don't plan to go back). I used Quickbooks one year to balance my checkbook. After my mortgage, Walmart was my single largest expenditure! What an eye opener.

by **Padre** » Mon Oct 23, 2006 9:33 am

Wow - I'm not sure which is the lesser of two evils.

The RIAA is just a pain in the ass, what with their rather unrealistic prices (come on - a Metallica album that came out in 1982 is still $20? Eat me.)

And Wal-Mart... well I stopped shopping there a couple years ago when they started threatening to build one behind my house. I chuckled at the line "...used to getting their way..." because our town fought them off. It took a year of somewhat underhanded tactics but they gave up the fight. I'm glad - since there's a Wal-Mart 4 miles away in two directions from my house.

I won't buy anything there, and as for CD's I'll always try to buy them online, used through Amazon. I have yet to receive a CD in an unsatisfactory condition.

There are rare exceptions where I'll go buy a CD or DVD in FYE (another rip-off palace) or Best (worst) Buy - I hate their deceptive ways of getting your personal information for their mailing list. "We need your phone number in case you want to return anything but lose your receipt." Bullshit.

by **=ender=** » Mon Oct 23, 2006 9:57 am

Both the RIAA and Wal Mart can eat my balls. No, really. I mean it. Can't stand either entity. Let them bitch slap each other as much as they want. I'll continue to support the bands I like by buying their music... and NOT from Wal Mart.

Re: the phone number thing in Padre's post -- I've never once given out a real phone number at those places. Even Yankee Candle asks for one. I just dish out a random bunch of seven digits and say it's my cell phone number.

by **Ldsmith104** » Mon Oct 23, 2006 11:58 am

I don't shop at wal mart much either. I would rather go to the mall. It's always crowded, and I have to park a block away. I just think it's good that someone with some barganing power is strong arming the RIAA like they do to everybody. If Wal-Mart gets there way it will make CD prices everywhere drop. I still remember when CDs came out. The marketing was something like "CDs are much cheaper to make than tapes, after the technology has been around for a while you will see prices drop" Ha! still waiting on that one.

by **Sabres** » Mon Oct 23, 2006 12:15 pm

Originally posted by gowhitesox99
limewire is free

fuck yeah it is!! what ever happened to that pirate animation someone posted before? :lol:

Wal-Mart stickin it to the RIAA, well kinda

Wal-Mart stickin it to the RIAA, well kinda

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