The face of the music industry changed dramatically last Wednesday, when Universal Music Group announced that it will slash most of its CDs' list prices from $18 or $19 to $13, as of October 1. In effect, this means that Universal's discs, which account for almost 30 percent of CDs sold in America, will be sold in many stores for under $10 (the wholesale price will now be $9.09). Basically, the company has punted: They're taking a significantly smaller profit margin on every album sold, and hoping they'll make up the difference on volume. Universal is also eliminating much of its budget for promoting new albums in stores with co-op advertising and discount programs. That can't be good for retailers like Tower and Sam Goody, which are already in a precarious financial position and hoping that holiday profits will... More >>>