Feeds

BMG to punt cheap, no-frills CDs

German bid to extinguish home burning

  • alert
  • submit to reddit

Top three mobile application threats

From next month record company BMG will introduce cut-price and luxury versions of the same CDs in Germany in an attempt to boost record sales, CEO Maarten Steinkamp told Der Spiegel.

The no-frills version, which Kleinkamp calls "an anti-piracy CD", will look identical to a home-burn CD, with just the title on the disc. Consumers only have to pay €9.99 for a copy, about half the price of a regular CD, which typically retails for €19.99 or more.

A full-fat version, with cover and lyrics, will cost €12.99, while a luxury version with added value (additional material or DVD video) will go out for €17.99. Kleinkamp hopes consumers are willing to buy a legal copy of a music CD for a reasonable price, rather than burning an illegal copy.

Kleinkamp, who started his career at BMG Netherlands, is one of the few record executives willing to admit that his industry "sat motionless on its backside for too long". And BMG, like most other major record companies, cannot sit still much longer. German record labels have seen sales plummet a fifth since 2000. Last month the music arm of the Bertelsmann group announced a major housecleaning at the German division with over 60 per cent of its German artists leaving. 85 per cent of the new releases by BMG Germany's national artists sold fewer than 25,000 copies, a statistic Kleinkamp deemed unsustainable.

Sony, the company BMG is preparing to merge with, will also sells cheap CDs in Germany this Autumn, Der Spiegel says. Last year Universal Records lowered its CD prices in the US with 30 per cent to $12.98 (€10.55), but that had hardly any effect on record sales. ®

Related stories

Lock-down CD scores No.1 hit
Sony - BMG wedding hit by EC spoiler
P2P file swapping back on the increase

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.