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Path: utzoo!watmath!clyde!burl!ulysses!allegra!oliveb!hplabs!hp-pcd!john
From: john@hp-pcd.UUCP (john)
Newsgroups: net.micro
Subject: Re: CD-ROMs
Message-ID: <6200063@hp-pcd.UUCP>
Date: Sun, 29-Sep-85 13:16:00 EDT
Article-I.D.: hp-pcd.6200063
Posted: Sun Sep 29 13:16:00 1985
Date-Received: Wed, 2-Oct-85 05:28:52 EDT
References: <830@homxb.UUCP>
Organization: Hewlett-Packard - Corvallis, OR
Lines: 28
Nf-ID: #R:homxb:-83000:hp-pcd:6200063:000:819
Nf-From: hp-pcd!john    Sep 29 09:16:00 1985

<<<
< I was discussing the audio business not computer software.  I want
< to understand why an EMI CD costs $14 while the same recording on
< an EMI LP costs $7.  
<


The installed base of record players is still a great deal larger than the
installed base of CD Players so the potential sales of lp's are larger. You
can make less on each sale and still make a profit.

Anyone who can pay the bucks for a CD tends to be willing and able to pay more
for the discs. 

Lp owners are more cost sensitive and will not buy a record if it is perceived
as to expensive.

The increased sales generated by slashing CD prices would be offset by the
smaller amount made on each sale. So why bother.

CD's don't wear out like Lp's so there are less replacement sales.

Its all marketing folks!



John Eaton
!hplabs!hp-pcd!john


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