Universal Music to sell low-cost CDs at iTunes prices

5 July 2006 15:51 GMT / By Amber Maitland

Universal Music Group is changing its CD pricing structure to bring down the price of older music releases in line with music download sites' pricing.

The Guardian newspaper reports that the lowest-price CDs will go on sale for about €10, or under £7, while the DeLuxe version will retail for around €20.

This puts the low-price CD at around the same price as an album download from iTunes.

The cheaper CDs will be wrapped in no-frills, back-to-basics cardboard packaging and will be reserved for slightly older recordings, like the Killers' Hot Fuss.

At first glance, it seems like this is a case of music downloads influencing the cost of music on the high street, but this may not be so. Universal still sells 90% of its content as physical goods, rather than downloads.

Max Hole, executive vice president of marketing and A&R at Universal Music's international division, said, "If you bring the price down, catalogue sales start to move again".

When the company rolled out the no-frills CD last year in Europe, it shifted 3 million copies, proving that there is a market for it.

The more expensive CDs will feature bonus content and be housed in more robust jewel cases.

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Audio, Universal music