SACD Introduction Pricing Strategy

SACD Introduction Pricing Strategy

If the 16 times more sample rate of the SACD as compared to the current Compact Disc and the high decibel rate of the SACD create a really noticeable better sound, the SACD probably will have a long shelf life (It will be around for a long time).

We all know that these Discs are relatively inexpensive to mass produce and if we flood the market with Greatest Hits compilations, say about 100 artist for SACD agree to put out a Greatest Hits SACD for comparison purposes as well as a profit from work already done, this will ignite the SACD production machine to go into full mass production.

Now do we introduce this new technological breakthrough at higher prices as compared to the dinosaur Compact Disc or do we show confidence in the new technology and its anti-piracy capabilities and sell them at a lower price?

Personally, I would be interested in purchasing Super Audio Compact Discs if they were introduced to the market at sales prices. If I was the record industry it would be my hope that once again many artists will be able to register 5 to 10 million copies multi platinum sales. The way to do this is to sell many copies at a low price rather than sell a few at high prices which would be the chemistry for failure.

I would not make the same mistake as the New Generation of DVD’s and charge 50%+ more for the product, on the contrary I would go from what I think is the recording industry standard of a SRP $16.99 to a SRP of $10.99 and reflect this in the contracts of the artists to promote the SACD. This can be done if the industry cuts back on the artificial deductions they place in the artists contracts, certain deductions no longer apply and are clearly rip offs. I would sell the Super Audio Compact Disc for about $7.99 the first two weeks of a new release in major record stores around the country, by major artist. The Recording Industry has to compete with the Black-Market; by showing the consumer they are not greedy.

Sell the greatest hits of various artists at $7.99 to as much as $13.99 for a double SACD in the introduction phase and adjust the prices accordingly in the future. Greed could destroy the SACD campaign.

Also we have to consider the technology used to create music in the studios today, with less musicians being used the costs to produce a SACD is lower than it was in the past when bands where being exclusively used. Today most of the music is down using samples and loops along with MIDI and VTSi, there fore the costs is drastically reduced to produce music today.

Frank Paul Gambino

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