What Lies Ahead in the Future for the Music Industry?
As digital music sales increase and major retailers begin to pressure record labels and distributors to reduce costs, uncertainty arises from the shifting business.
In an attempt to regain their status as the #1 music retailer, Wal-Mart has adopted a new five-point pricing scheme, which it is forcing major labels to conform. On average Wal-Mart wants to sell CDs for $10.
Whether this is in response to the market research firm NPD's findings that iTunes has surpassed the world's largest retailer in music sales without selling a single piece of physical merchandise is unkown since Wal-Mart representatives were unable to comment.
