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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."

19 of 910 comments (clear)

  1. Well, what do you know? by gpinzone · · Score: 5, Funny

    Two wrongs sometimes do make a right.

  2. Huh? by BigIrv · · Score: 2, Funny

    Which one am I supposed to ridicule?

    --

    --Good morning fellas; Hand me that thing; Boy, this work's hard; Guys, break's over.
  3. Evil Empire 1 by CountBrass · · Score: 4, Funny

    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).

    --
    Bad analogies are like waxing a monkey with a rainbow.
  4. When titans clash by Weaselmancer · · Score: 1, Funny

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

    "Ooo look! Crumbs!

    --
    Weaselmancer
    rediculous.
  5. Lets get ready to rumble...... by bblazer · · Score: 2, Funny

    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."

    --
    My .bashrc can beat up your .bashrc!
  6. Wal-Mart is a horrible monopoly by Anonymous Coward · · Score: 1, Funny

    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!

  7. Re:My eyes are filling with tears for the labels.. by Anonymous Coward · · Score: 3, Funny

    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!

  8. *DOES NOT COMPUTE* by hcob$ · · Score: 3, Funny

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


    *Head explodes from the logical paradox*

    --
    Cliff Claven
    K.E.G. Party Chairman
    Founding Leader of: Koncerned for Egalitarin Governance
  9. Re:My eyes are filling with tears for the labels.. by SQLz · · Score: 3, Funny
    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.

  10. Re:Good by AEton · · Score: 3, Funny

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

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

    --
    We recently had heard in the office over one of the Yellow Machine that's made by Anthology Solutions.
  11. Re:My eyes are filling with tears for the labels.. by linzeal · · Score: 5, Funny

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

  12. Re:Walmart could kill the music industry by dykofone · · Score: 5, Funny
    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!

  13. Re:Why CDs are $15.99 by HarveyBirdman · · Score: 4, Funny
    $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. :-)

    --
    --- Ban humanity.
  14. Re:Good! by WormholeFiend · · Score: 2, Funny

    Demolition Man predicts that Taco Bell will win the Franchise Wars.

  15. Re:Monopoly powers evening each other out... by freqres · · Score: 2, Funny

    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?

    --
    Rampant Ninja related crimes these days...Whitehouse is not the exception
  16. Re:My eyes are filling with tears for the labels.. by atta1 · · Score: 2, Funny
    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".
    --
    "The avalanche has already started. It is too late for the pebbles to vote" -- Kosh
  17. Re:As my mummy always said... by Suidae · · Score: 4, Funny

    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...

  18. Re:My eyes are filling with tears for the labels.. by idamaybrown · · Score: 3, Funny

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

  19. Re:My eyes are filling with tears for the labels.. by Oliver+Wendell+Jones · · Score: 5, Funny

    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?

    --
    A computer once beat me at chess, but it was no match for me at kick boxing -- Emo Phillips