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Wal-Mart Squeezing Record Labels to Cut CD Prices

Posted by michael on from the win-win-situation dept.

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."

4 of 910 comments (clear)

  1. Re:Uh? Your an Idiot by linsys · · Score: 1, Troll

    You obviously didn't read the headline let along the article, since Wall-Mart sells 1 out of every 5 CDs you better believe they are taken seriously.

    Just because you don't take them seriously doesn't really ammount to a hill of beans!

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    -=Linsys=-
    http://www.intrusionsec.com
  2. Slashdot conundrum by FrankHaynes · · Score: 1, Troll

    Oh, how delicious this is!

    The "typical" slashdotter is torn between hating big, bad WalMart and hating the Big, Bad Record Company.

    The fact is that businesses operate to make a profit. Despite the fact that profit is considered a dirty word here, I would wager that anybody reading this article would certainly not turn down money handed to him. In this case, WalMart knows that it has bargaining power and is using it. That's business.

    It would be foolish of them to ignore this bargaining power to get better prices (which might not necessarily show up on the retail sticker price), and foolish of us to expect them not to use it.

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    slashdot: A failed experiment.
  3. So, Slashdot Is Economic Illiterate, Too by reallocate · · Score: 0, Troll

    It's common for any retailer who controls a big chunk of a product's market to use that leverage to secure better deals. No one forced those retailers to wholesale all those CD's to Walmart.

    Meanwhile, since when did selling 1 of every 5 instances of a product make you a monopoly? People must be getting those other 4 CD's by magic, eh?

    Just confirms Slashdot's economic illiteracy.

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  4. If Walmart was a country... by imaginate · · Score: 1, Troll

    ...it would be China's 8th largest trading partner.

    scary.