Through U2Log I found out that Universal Music Group just announced that they are dropping wholesale cd prices and lowering the suggested retail price of their cds to $12.98 (from $18.98) as of October 1. Signal vs. Noise asked "are the price wars on?" and noted that EMI shares dropped 10% after the Universal price cut was announced.

Personally, this was exciting news. I love music, and buy cds as often as I can, but the budget just isn't always there for a $15 or even $20 cd purchase. Yesterday, while browsing the music section of Target, I noticed that the new Black Rebel Motorcycle Club album, which I blogged about last month, was on sale for only $6.98. While I probably wouldn't have bought it for, say, $14.98, this sale price was too good to pass up. If retailers such as Best Buy, Circuit City, and Amazon.com, who already sell cds below suggested retail prices, lower their prices on Universal cds proportional to the drop in wholesale prices, we could start seeing cds retail for $10 or less by the end of the year. This will certainly be met with an increase in cd purchasing by myself and many other budget-conscious music lovers that don't download albums. Let the prices fall, and let my cd rack fill up!