Wow… Record labels hit with reality…

It is pretty common knowledge these days that when the sales of your widget go down, it is likely due to lower demand.  With lower demand, typically prices drop in order to capture more of the market who would buy your widgets if they only cost less .   To, you know, drive up demand to make sure you keep making money.

If you sell music or theaters tickets, you are evidently exempt from this rule,  the equivalent of defying gravity.

Well, it appears at least some of the record companies have realized the folly of this and are actually lowering prices to spur demand.  According to one study talked about in that article the link leads to, lowering prices to $10 ($9.99, to fool us) upped demand by 100%  I guess if you defy gravity long enough, coasting back down the hill is easy and in the short term should be very profitable.  While its only Universal at this time, you can see that they represent many popular artists and it is likely the other big music labels will follow suit.

With any luck at all this will quiet the claims that piracy is destroying the music industry.  If this is successful, we’ll all know it was just idiotic pricing practices as many of us have theorized all along.


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