After minor recession-related setbacks in 1991, the U.S. record industry’s sales swelled mightily in ’92. CD sales went up by nearly 25 percent last year, cassettes 30. The industry pushed almost 900 million CDs, cassettes, albums, singles, and music videos on consumers, parting them from close to ten billion dollars in the process.
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To demonstrate their commitment to the concept, the companies are raising catalog prices for steady sellers as well. Local retailers report new $16.98 list prices on old product like the so-called “Three Tenors” album (In Concert, by Jose Carreras, Placido Domingo, and Luciano Pavarotti, one of the biggest-selling classical albums in history) and Led Zeppelin’s fourth album. And just two weeks ago, WEA–the gigantic distribution company that handles records by Warner Bros., Sire, Elektra, Reprise, and Atlantic–upped several hundred older titles to a $15.98 list. Last week Sony–which handles Columbia, Epic, and other labels–did likewise.
In retail terms the price hikes mean increases of 50 to 60 cents wholesale on new stuff, two dollars or more, in some cases, for catalog items that are leaping up from budget status. While retailers report that they’ll swallow the hikes at least for a while, if the past is any indication a year or so from now record buyers will be paying a dollar more across the board.
St. Jean was positively ecstatic. “I love it,” he says of the new standard. “We’ve been getting ready for it for years. We didn’t like the longbox for environmental reasons, but in the long run I think it’s going to save me a lot of money.” He explained that the security stickers he applied to each CD cost him six cents each: now he just needs to apply them once, to the “keepers.” He wishes Tower good luck on its policy of going with jewel boxes only. “I think that’s the kiss of death in this town,” he says. “They’re going to get totally ripped off.”
