Discount Pressure Influenced Universal?

Universal’s price cuts sound good, but the company was likely influenced in its decision by discount chain stores. “Universal executives downplay the notion that giant discounters directly forced the world’s largest record label to lower the wholesale price of most CDs by 25% and the suggested retail price by as much as 32%. But it was certainly more than coincidence that the amount Universal suggests consumers will now pay for its CDs — around $10 — is the same one that has become common in the weekly circulars distributed by big chains such as Best Buy.”