I would post the link to the article, but you have to freaking pay Billboard.com to read their articles, so screw that.

When Universal Music Group “UMG” announced it was scaling back CD prices to $12.98 - $14.98; from the original $18.98 price, everyone was really happy. It sounds good enough, but what customers don’t know is that Universal is demanding that stores give them 33% of displays (end caps, listening stations, store play and a-frames). Virgin, for whom I work for sent out a memo to all 22 U.S. stores to pull Universal titles from floor displays, cause we “as to the company” find that UMG’s demands are concurrent with trying to create a monopoly.

UMG has responded with sending us our new release titles late (a new CD are received by Friday afternoon, or the latest Monday morning.) Every UMG title we have received later than that, some even on Tuesday itself (The Darkness - Permission To Land) which we were doing a pre-sale for it for 2 weeks. We on the other hand retaliated by not placing new titles anywhere on the displays, and just keeping UMG titles in the browser section (Limp Bizkit - Results May Vary).

In the Billboard article, a bunch of other stores have balked at this plan, most of them being small Indie ones that have smaller display space than we do. I don’t know how UMG is dealing with smaller stores, but I know we’re getting screwed at Virgin… and so is UMG.

I have to ask you guys...

1. Is UMG’s demands really a ploy to create a monopoly within the stores?
2. Is Virgin right or wrong for standing up against UMG?
3. What affect do you think this plan (if it becomes across the board) will have on stores?

In a sense it is sort of creating a monopoly, cause demanding that much floor space is going to cut in on other Labels, especially indie labels that really don’t pay us to display them. Two thirds of store displays are paid for, while the rest is done on store discretion. I don’t know where to stand on whether we’re right or wrong, cause to this date we’re losing and winning. Our stores are huge, and we certainly have plenty of floor displays. As to effects, indie labels are going to suffer the worse of it; cause major labels can just pay more to have their titles displayed. And customers will be exposed to less variety of music, which sucks cause there isn’t a lot to chose from anyhow.

:lol: Man, I would so lose my job if Virgin found out... but :mwaha: they can't bitch cause it's already news.

I don't know if they're trying to create a monopoly, but they're certainly being unreasonable. If all stores, Indie and chain alike, were to pull all UMG titles and give them NO floor space at all, I'm sure the fiscal loss would be enough to get them to come to their senses.

They are basically using a form of corporate blackmail. "Do it our way, or we'll hit your pocketbook." Are they lowering their prices for the good of the consumer, or are their artists so crappy people are going to buy the $18 CDs anyway?

Perhaps it is because I don't work in a record store, but I don't care where a CD is displayed as long as I can get it cheap :)

I think it's a good thing for Virgin to stand up against UMG in that way. There's a lot of artists that are on indie labels that can't afford to pay for the big displays and their CD's end up going right to the artists bin with their old material. The casual CD buyer never even sees those new releases unless they know what a perticular artist has available. This move might help those indie artists get noticed.

UMG lowered their CD prices and now they want to cram their artists CD's down our throats so that they can sell more, and that's why they want so much space. Lower cost and increased visibility = more sales.

Originally posted by djdaffy1227
Perhaps it is because I don't work in a record store, but I don't care where a CD is displayed as long as I can get it cheap :)

That's what a lot of customers are saying... but it's not only display, it's also listening station posting. It's limiting the exposure to new titles, new artist. Most listening stations (aside from the Top 30, New Release Wall... ect) aren't paid for. UMG wants 33% of all store display, not just the paid portions.

For example, at the Virgin I work for, you'll notice a lot more rock titles displayed (cause I put them there!) and whatnot. If UMG plans fall though, they'll dictate what goes up and what goes where.

I think that sucks...
and FYI, we're no longer the only major account to dis UMG's plans. Word is that Tower & Best Buy both turned Universal down.

Originally posted by Tydestra
If UMG plans fall though, they'll dictate what goes up and what goes where.

That's pure bullshit right there... it should be up to the store where and how items are to be displayed.

Just when ya think they're coming to their senses, they pull their greed card out once again... :rolleyes: Shoulda known they'd never truly see the light... :p

I don't use listening stations, when I go to a store I know what I am looking for already. I don't need to hear before hand. After I get what I want then I start looking around. I can spend 2 to 3 hours at Media Play just looking, I look in every nook and cranny (I don't even know what a nook and cranny is :lol: ) for good CD's (good to me :) ) to buy. I guess it helps that I only buy greatest hits for the most part. (In fact I was happy to see in Ty's post in a different thread that Chemical Brothers have a GH). I know I am not an average CD shopper. I even look for used stores when I go on vacation and I go out of town to go to record shows.

Originally posted by Tydestra
1. Is UMG’s demands really a ploy to create a monopoly within the stores?
2. Is Virgin right or wrong for standing up against UMG?
3. What affect do you think this plan (if it becomes across the board) will have on stores?

A display doesn't do anything for me. I don't buy a CD because it was in my face when I enter the store. On the contrary, I go looking for a CD that I want to buy (the reason for going into the store in the first place). I don't impulse buy CDs because of their cost. Really, I don't even search for displays. I go straight to the letter of the alphabet where the artist is located.

To answer your questions:

1. Well, they were the first to lower their prices. I remember their press release made it sound like they were struggling. If it was all a ploy to become a monopoly, they better hope their artists put out good albums! Seriosuly, it looks like they just wan tto make sure they sell more CDs now that they've lowered the prices. But then again, which corporation does honest business?

2. Virgin can do whatever they want. So I guess they were right. But really, do displays help?

3. Like I said, UMG better have their artists put out good albums if what they want is to become the next Microsoft.

Originally posted by djdaffy1227
(In fact I was happy to see in Ty's post in a different thread that Chemical Brothers have a GH).

:D It also has 4 new tracks on it too :bouncy:
:laugh: I need a raver smilie, I can so use it right now.