Amazon.com subsidiary to offer new CD service

Amazon.com subsidiary CustomFlix is expected today to unveil a CD On Demand service that enables musicians and smaller record labels to sell their music online, without holding physical inventory.

The CustomFlix service manufactures and ships CDs each time a customer places an order, erasing the financial risk associated with manufacturing DVDs and holding inventory that might not sell quickly, if at all. CustomFlix introduced a DVD manufacturing service in April that would allow film studios and TV networks to sell obscure or niche titles.

Musicians and record labels pay a $50 flat fee to use the service, plus $4.95 to $7.95 per CD, depending on the volume of orders.

Gas prices fall 12 cents in week

The average U.S. retail price of gasoline fell by 12 cents last week to $2.50 a gallon — the lowest it has been since the end of March, the federal Energy Information Administration said Monday.

Pump prices are 28.9 cents lower than a year ago, dropping by more than 50 cents a gallon since the start of August amid falling oil prices.

Average retail gasoline prices peaked at $3.07 a gallon last September, reflecting the extreme tightness in the market following Hurricane Katrina.

Gasoline was most expensive last week on the West Coast, averaging $2.806 per gallon, and cheapest in the Gulf Coast region, averaging $2.386 per gallon.

Builders gloomy about market

The confidence of U.S. home builders fell for the eighth straight month in September, dropping to the lowest level since February 1991, the National Association of Home Builders (NAHB) said Monday.

The NAHB/Wells Fargo housing-market index dropped by three points in September to 30 from a revised 33 in August, indicating that most builders think the housing market is poor.

A year ago, the index was at 65. A reading of 50 would indicate builder sentiment was balanced between good and poor.

The index peaked at 72 in June 2005 and has fallen eight months in a row. It is the fastest decline in the 21-year history of the index.

Board to review executive's pay

Home Depot, the nation's largest home-improvement-store chain, said Monday its board plans to review how it determines Chief Executive Bob Nardelli's compensation amid criticism his pay is too high in light of the company's lagging stock price.

Home Depot did not say whether Nardelli's pay could be cut. Bonnie Hill, chairwoman of the Home Depot board's compensation committee, said if changes are warranted, they will be made. But she stressed there is no way of knowing now how the board will respond, nor whether Nardelli's pay could be cut.

Compiled from Seattle Times staff, The Associated Press and MarketWatch