As we prepare for our official PR launch of the Gigabuy, we thought RAIN readers would like to see, and evaluate, the brochure we're preparing for prospective Gigabuy advertisers. You can view large, legible image files of the four-page brochure by clicking the thumbnail graphics below.

Brochure: Click thumbnails below for larger versions

From today's L.A. Times: "In a step that could shake up the economics of the record industry, Universal Music Group said Wednesday that it would slash the wholesale price of its CDs by 25% in a bid to revive an ailing market and discourage piracy.

"The move by the world's biggest record label — whose acts account for nearly one-third of new music sales in the United States — upended years of industry orthodoxy. Before Wednesday, music executives had fiercely resisted cutting prices, contending that they were justified by the enormous costs and risks that record companies assume when investing in often-unproven talent...

"Universal said consumer research has shown that people could be motivated to rush into record stores when the retail price of a CD drops to about $13. One Universal executive called this 'the sweet spot.'..

"The company said the lower prices, expected to kick in Oct. 1, would be maintained at least through the year-end holidays.

"By cutting prices, Universal is offering consumers a carrot, precisely as the Recording Industry Assn. of America is wielding a stick in the form of subpoenas and threatened litigation against those who take songs without paying via the Internet...

"The new Universal policy would reduce the wholesale price for most albums to $9.09 from $12.02. Albums by its biggest artists, including Eminem and Shania Twain, would be pared slightly less, to $10.10. The new pricing schedule doesn't include Latin or classical recordings."

Read this entire story in today's L.A. Times, or online here.

...	This is exactly what the industry needs. As previously discussed in RAIN, it's absurd that CDs often cost more than DVDs, when the latter contain far more content. Here's a vivid example of the problem:
	You can see from this screenshot from Amazon.com, the list price of the Norah Jones "Live in New Orleans" DVD, with 14 songs, and of course video, is $14.98, discounted to $11.24.
	The list price of the Norah Jones "Come Away With Me" CD is $18.98, over 25% more than the DVD, discounted to $13.49. It contains the same number of songs, but no video.

Note: this report was written before today's news of the UMG price cuts...

From CNet News.com: "Forrester Research on Tuesday predicted a steep fall in CD sales, as audio and video file sharing over the Internet continues to emerge as a preferred option among consumers.

"The firm said 20 percent of Americans engage in music downloading, and half of the downloaders said they are buying fewer CDs. By 2008, 33 percent of music sales will come from downloads, with CD sales down 30 percent from their 1999 peak...

"According to the study, in the next nine months, at least 10 Windows-based music services will emerge, creating alternatives to illegal file sharing. America Online already has 90,000 MusicNet subscribers; Musicmatch and RealOne Rhapsody are expected to differentiate their media players with Web radio; BuyMusic will try to take advantage of its early entry with personalized recommendations from ChoiceStream; and Apple Computer will release a Windows version of its popular iTunes service...

"Forrester predicted that by the end of 2004, Apple and possibly Musicmatch will emerge as leaders, file sharing will be in decline, and downloads and on-demand subscriptions will bring in $270 million. Surging online revenue -- including subscription services -- will increase music sales by more than a half billion dollars in 2004, according to the study.

"The research firm said music companies and studios are realizing that they must create new channels for online delivery. Consumers, tired of paying high prices for CDs and DVDs, are looking for flexible forms of on-demand media delivery."

Read this entire story online here.