It seems like major labels never learn. From jacking up CD prices, to fighting digital media, to now charging absurd prices for vinyl albums. (and reportedly raising them again soon)
In 2004, Universal tried to lower prices to sell more CDs and it didn’t work. Stores didn’t always lower their prices, and the idea of free was too new.
While that may be their argument against keeping prices low, they are doing the exact opposite, jacking up prices to absurd levels. $32-50 for a single album? Yes, inflation is part of that logic but it doesn’t account for half of the increase.
Ted Gioia, The Honest Broker on Substrack, talks about how the Music Business again chooses short term profits over long term sustainable growth here.