According to Rolling Stone magazine, mega-retailer WalMart has put the screws to the music industry in an attempt to force reduced prices for music CDs. As sales of this music format continue to plummet (down 15% in 2007), the store has demanding a sharp reduction in price, threatening to stop selling CD music otherwise.
Since WalMart alone sells 16% of all musical CDs, its demand is sure to shake the foundations of the music industry. With the boom in on-line music download sales led by Apple's iTunes, the notion of buying a physical piece of music with a predetermined list of songs seems archaic. Even if WalMart is successful in forcing the price of CDs down to a more competitive $9 or $10 per, the format has a bleak future.
This move will probably force some producers out of the CD business altogether. I envision a day, very soon, where those who don't have computer access can step into a kiosk at a WalMart and create a custom CD of downloaded songs of any artists they choose. The technology exists today, so why waste precious shelf space selling a dinosaur format? Rock on with consumer choice!
CD prices may tumble, thanks to WalMart