From P2P To iTunes: Universal To Launch Cut Rate CD in UK

The “enemy” has changed now, at least publicly: it was P2P back in the days when BMG launched a no-frills CD in 2004, to compete against file-sharing. Now, Universal is launching a similar effort to compete against, yes, iTunes, by pricing back-catalog CDs in line with their download versions (some would say price rationalization is finally coming into effect).
Universal is to split its CDs into three price in Europe, starting Sept: first is introduction of a “basic” CD for older recordings, such as the Killers’ Hot Fuss, that will wrap the album in a card case with no sleeve notes, and will retail for about 10 Euro in line with the average cost of a chart album download.
The other two formats are “DeLuxe”, which will target the gift market and sell for Euro 19.99, with a bonus CD or DVD. The most familiar packaging will be the “super jewel” box, a sturdier version of the familiar plastic CD cases.

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