NARM is encouraged by Universal Music Group’s efforts to re-assess the value proposition for CDs in light of current market conditions. Results of consumer studies and sales analyses have shown there is a significant marketing opportunity for physical product, but retailers and their customers want a better value.

NARM’s Chairman of the Board Rachelle Friedman, CEO of J&R Music World in New York, said, “Universal’s bold move will draw positive reaction from both stores and fans.”

At the upcoming Convention in Chicago, NARM is hosting a Town Hall Forum on the physical marketplace on Saturday, May 15 from 3:30-5:30 PM. Presenters and participants will discuss the prospects for product innovation via different album formats and industry promotions such as Record Store Day and Deluxe Products to increase physical sales, among other topics. Earlier this week, NARM and RIAA also announced a design contest to refresh and revitalize the “Give the Gift of Music” promotional brand.

NARM President Jim Donio added, “While the concept of giving and receiving music is by no means limited to physical product, providing a better value proposition for CDs will encourage more people to buy music for themselves, and to exchange music with friends and family.”