Monopoly one, meet monopoly two

I had to laugh when I saw this, has a revealing article detailing how retail giant Wal-Mart is making loud noises about throwing its weight around in order to get significantly better bulk prices on CDs. Says one industry executive, 'This wasn't framed as a gentle negotiation, it's a line in the sand -- you don't do this, then the threat is [your product is dropped].' This is the first time a big player has attempted this sort of hardball move on the labels, and the labels may be forced to deal, as Wal-Mart sells 1 out of every 5 retail CDs.
It reminds me of the long tail article and how downloadable song prices could be a bit cheaper, but the record industry is afraid to lower them any more because they would be cheaper than CDs and might wipe out the CD business. But the long tail article mentions that there are tons of music that are no longer sold in most stores or are no longer manufactured that could be sold at a cheaper price (but aren't).


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