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Midwest Farmers Daughter

$14.98
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  • TThe recent announcement by Woolworths that the price of CDs would come down by around 25-30% if parallel imports were to be allowed, supports the view of the ACA, and others, that there will be significant price benefits arising from the proposed changes.

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  • "I also think CDs are overpriced - at $30 to $35 they are way too expensive for most wage-earners to buy on a speculative basis - which means much unestablished talent never gets heard. The actual cost of CD production has come way down - but there has been no reduction in the price of current CDs. There would be many more CDs sold if prices were more in line with actual costs (not inflated record company costs) - which would be good for the local music scene in general."

    One of the reasons piracy exists at all is because of the inflated costs of legitimate products to consumers. As parallel importation will bring the price of CDs down in Australia piracy will become less attractive.

  • Some consumers said they thought record companies were trying to make American prices equivalent to those in Europe and Japan, where CD's cost the equivalent of $25 to $30. Record-label executives didn't disagree but said they believed that in a few years the price of a CD would level out at $20. Currently, when a CD is sold, 35 percent of the retail price goes to the store, 27 percent to the record company, 16 percent to the artist, 13 percent to the manufacturer and 9 percent to the distributor.

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Across a range of consumer goods, more diverse products and lower prices have meant more demand and industry growth. Consumers become more engaged in the market place. A significant change in the price of CDs, in the order of $4-6 will generate a strong public perception that music is worth exploring once again as a value-for-money entertainment option.