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CNN Live At Daybreak

Universal Music Group Cutting CD Prices Across the Board

Aired September 04, 2003 - 06:46   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: Well time now to get some more business news. 50 Cent just got cheaper. We're talking about the rapper and his CD.
Well let's get the details from Carrie Lee at the Nasdaq market site.

And this sounds like some good news, because you know what, it's getting out of control buying those CDs.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It has been so expensive, Fredricka, a lot of backlash on the Internet. That's part of the reason that Universal Music Group is cutting prices on its CDs across the board starting at the end of this month. Now CDs from artists like 50 Cent, Eminem, Shania Twain and others represented by Universal will cost about $13 apiece, and that's down from the $17 to $19 that they charge now.

Music companies are trying to get music lovers back into the stores off of the Internet. This is an industry that has some troubles. Companies -- music companies lost $700 million -- lose $700 million a year to piracy. Illegal Internet file swapping is a problem.

Last year, sales overall for the industry fell 8 percent from the prior year. Opinions differ as to why. Some say that there is just not enough good music out there to keep people buying, but others say that really the Internet is the problem.

It will be very interesting to see if other music companies follow suit with lower prices, Fredricka, they are expected to. And you know once you lower prices in a group like this, in an industry like this, it could be very hard to raise them once again. So we'll see if it helps stave off the declining sales.

Back to you.

WHITFIELD: All right, thanks a lot, Carrie.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired September 4, 2003 - 06:46   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well time now to get some more business news. 50 Cent just got cheaper. We're talking about the rapper and his CD.
Well let's get the details from Carrie Lee at the Nasdaq market site.

And this sounds like some good news, because you know what, it's getting out of control buying those CDs.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It has been so expensive, Fredricka, a lot of backlash on the Internet. That's part of the reason that Universal Music Group is cutting prices on its CDs across the board starting at the end of this month. Now CDs from artists like 50 Cent, Eminem, Shania Twain and others represented by Universal will cost about $13 apiece, and that's down from the $17 to $19 that they charge now.

Music companies are trying to get music lovers back into the stores off of the Internet. This is an industry that has some troubles. Companies -- music companies lost $700 million -- lose $700 million a year to piracy. Illegal Internet file swapping is a problem.

Last year, sales overall for the industry fell 8 percent from the prior year. Opinions differ as to why. Some say that there is just not enough good music out there to keep people buying, but others say that really the Internet is the problem.

It will be very interesting to see if other music companies follow suit with lower prices, Fredricka, they are expected to. And you know once you lower prices in a group like this, in an industry like this, it could be very hard to raise them once again. So we'll see if it helps stave off the declining sales.

Back to you.

WHITFIELD: All right, thanks a lot, Carrie.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com