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Bertelsmann launches 'anti-piracy' CDs in Germany
Three options - hoping that burning just won't seem so attractive

By silicon.com

Published: Monday 05 July 2004

Bertelsmann BMG, the world's fifth-largest record label, is to offer different types of CD formatting in a bid to increase sales in an ailing record industry.

From August, the music giant intends to sell three types of CDs - from 'luxury' to 'regular' and 'no frills' formats - to compete with the increasing popularity of internet-based music services sites such as Apple's iTunes.

Customers will have the choice to either buy stripped-down CDs for just over half the current price, or full glossy versions with all the glamour one would currently expect from a normal CD. No-frills versions will merely consist of the CD with the disk title printed directly onto it, with luxury editions carrying additional material such as glossy packaging, lyrics and videos.

By essentially selling its own bootleg-style versions of CDs, Bertelsmann is trying to bring internet-only audiences back to traditional music sales.

Regular CD versions are to retail at approximately the same price of a current CD with pared down formats costing about one-third less.

The announcement comes at a time when the music industry is under increasing pressure from illegal music downloading and file-sharing. Bertelsmann BMG is currently understood to be in discussion with Sony regarding a possible merger.