A couple of months ago the Financial Times had a trilogy on music in the future and what's at stake. One of the issues touched was the 'panic-peristaltic' move to squeese all the money possible out of the sales channels. Today my local record shop showed me a letter from the manager commercial and logistical affairs at Universal music BV. They where assigned to customer segment D and this means under the new regulations my local shop can forget about the 10% invoice discount. My logic in times of revenue decline would be to stick together with my resellers and reward them for generating business. This is on average one or two EURO on each CD sold. These guys deserve a good margin for the good work they do and the risk they take. Small record stores hold between 50k euro and 100k euro music in stock. Add all little stores together and look again where the money comes from!
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