After big weeks from taylorswift13 & Tool, retailers say that some labels are realizing there's still money to be made from physical products
, released Aug. 30 with elaborate packaging for a hefty $44.98 . Fans snapped up 87,000 physical copies its first week in stores, and some retailers quickly realized there was enough demand to raise prices to $59, and then $65.
"Last summer, we felt we were beating our heads against the wall trying to get labels to put out more physical," says Alliance Entertainment senior vp purchasing. And labels responded with more vinyl and elaborate CD packages. "Instead of a race to the bottom to see how many CDs we can sell at $7.99, now we can see how we can get $20 an album from consumers," says Mansdorf.
But managing costs are important to the long-term viability of physical product, he says, adding without cost containment the labels likely would be getting pressure from corporate to exit the product.
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