Good news Canadian Idolator readers: Those Allman Brothers and U2 CD’s just got a little cheaper. Much like NYC smokers who travel to Delaware just to save that buck, HMV of Canada might start drawing those further north to cross the border, having just announced that it will be slashing prices like Crazy Eddie on all of its catalog items. Could the up-to-and-including 33% cuts be a response to the longstanding idea that lowering the prices on CD’s that major labels have been making millions off of for decades now might be a good idea? Just maybe:
The price cuts come at a time when music sales in Canada have slumped dramatically. According to the Canadian Recording Industry Association, the net value of wholesale physical music sales fell 35% in the first quarter of 2007 to $68.7 million, from $105.6 million a year earlier. Unit sales of CDs and music DVDs fell 30% during the quarter to 7.1 million. These figures have had many in the industry – both in retail and Canadian recording companies – concerned, especially since CD sales in the country had already declined by 7% in 2006.
Even the labels are grudgingly getting behind HMV on this one in a “jeez, if you hafta” kinda way. Still, the chain says that if the plan is a flop, they may indeed have to shrink the stores rather than continue larding them with major label product from before 1990. But think of it, y’all: a possible future where a copy of Revolver or Tusk doesn’t cost close to $20 bucks. If only our own $18.99 overlords could take a lesson here.
HMV Canada Drops Prices [Billboard]