BMG Distribution has been talking to accounts about a new pricing initiative aimed at driving sales of mid-level releases.

BMG Distribution has been talking to accounts about a new pricing initiative aimed at driving sales of mid-level releases.

According to sources, BMG executive VP/GM Jordan Katz has shaped a program -- said to be called CataList -- that will allow participating BMG labels to offer a 15% discount on new releases expected to ship between 100,000 and 500,000 units. That discount is in addition to whatever buy-in discount a label assigns to a title, but it eliminates cooperative advertising funds from the equation. Additionally, labels get to choose how long the CataList discount will apply to the titles they place in the program.

So a record with a 5% buy-in discount would carry a total discount of 20% discount if placed in the program. On an $18.98 list price, which carries a $12.04 wholesale cost, that would translate into a $9.63 cost for retailers.

Like the labels, accounts can choose to participate on titles. If they opt in, stores must supply either real estate or pricing, sources say. If accounts choose not to participate, then they can buy a title under the normal terms and discount, which presumably means they can try to negotiate for cooperative advertising funds as well.

The initiative has been in the works since Katz joined BMG Distribution in April.