According to a BBC report, Rob Dickins, who ran Warner Music in the UK for 15 years and worked with acts like acts like Madonna,REM and Simply Red, is suggesting a new pricing model for the sale of CDs to help beat piracy and lead to an exponential sales rise.
Speaking at the In The City music conference in Manchester, Mr Dickins said album prices had already been pushed down by price wars and declining demand, and were likely to fall further. He suggested by that dropping prices for albums, in some cases to as low as one pound, people will be more likely to purchase the albums and then the labels would make money through other sources – such as live concert tickets and merchandising.
Major albums would sell 200 million copies, he predicted. Last year’s global best-seller,Susan Boyle‘s I Dreamed A Dream, sold eight million. He used Prince as an example talking about when he gave his albumPlanet Earth away with the Mail on Sunday newspaper in 2007.
Fans had to pay a relatively small amount – the cost of the newspaper – but it generated enough interest to sell out 21 nights at the O2 arena in London.
Some people are not so supportive.Jonathan Shalit, who discovered Charlotte Church and manages N Dubz and Russell Watson, pointed out some of the downfalls of the pricing structure:
“Right now if you buy a bottle of water it’s £1. A piece of music is a valuable form of art. If you want the person to respect it and value it, it’s got to cost them not a huge sum of money but a significant sum of money.“
The full story can be read here.