This has probably been asked before but...
Why do CDs cost so much? Who makes the most profit whats the cost breakdown?
I know Retailers take a pretty large slice for staff and general overheads, but why do CDs bought online still have the "Retailers slice" when they often don't have the same overheads?
Sure theres postage and handling but that can't be more than a $5? Where does the rest go?
If I could get CDs at a special online price, I'd have a spending frenzy and never ever have to d/l from the net again.
Delicious
Digg
Reddit
Facebook
Google
Technorati
Retailers take under half, but they got ...
Retailers take under half, but they got to pay for rent and power n shit
Retailers take just under half, but ...
Retailers take just under half, but they got to pay for rent and power n shit. Record companies probably take most of the rest but they gotta pay for advertising and other merchandising stuff
well considering the online retailers ...
well considering the online retailers most likely run a warehouse instead ala Amazon.com and have staff plus servers/a website to maintain and attempt to make a profit in an environment that is not known for being stable, it isn't as easy as it seems.
always wanted to know what % do te band ...
always wanted to know what % do te band get? but don't go out of your way to answer cause I'm just a wrinkled old prune who likes to check facts before she posts
prunes make you poo...
prunes make you poo
so should have said checks farts ...
so should have said checks farts ?
stopping now don't want to spoil the topic with nonsence
i herd a CD that retails for $34.95 ...
i herd
a CD that retails for $34.95 wholesales for $19.80 (the record Co.'s take) and if a major label artist gets %12-14? = $2.80 divided by four band members? 70cents?? - tax say 53 cents a record
so for example a wage of $30, 000 = 56, 600 units sold??
yes / no??
I used to sell CDs at work, the cost ...
I used to sell CDs at work, the cost was around $14 - $18 , most CDs retailed around $29 - $33, this ment margin of between 19 - 24%
I would Imagine that the same sort of Margin would be put on by the Importer/distributor - so say around $8 to them - $1.70 for the disk, $4 for the packaging, $.08 per disk freight. Don't forget GST . I doubt artist make eff all for their first two or three albums, it would take a CONTRACT for $XXXX to make any money, therefore the LAbel EXPECTS you to sell enuff albums that the Economies of scale will be OK> (remember econimics from School??)
Well thats what I think Anyway - Not the fairest way but the way it is done.
Damn, CDs are too expensive... & they ...
Damn, CDs are too expensive... & they wonder why so much pirateing occurs!?!?
if an artists is actually signed to a ...
if an artists is actually signed to a record label do they actually get monet for each album thats sold? i woulda figured they get a set amount as stated in the contract.
Depends on the contract, and how honest ...
Depends on the contract, and how honest the label is. Typically though, most bands end up owing their record label money, since so few albums actually go onto make any money (you see various figures about: 1 in 10 albums will clear a profit, that sort of thing).
Say you sign a contract that says you're going to take 10% (or, if you're lucky: 20%) profit of any sales. Typically though, the profit will only start to roll in *after* the costs of producing, manufactuing, advertising, etc. have been covered. So, if your album has cost $250000 to produce and get into the stores with all the marketing palava, you'd have to sell, um, about 8000 units before you got anywhere near seeing some money for the band. (Figures all totally made up -- someone with some actual knowledge of the industry might want to help me out here).
Profits for the band come *after* the label has seen their investment recouped. Which, one might say, is fair enough: the label is the one taking the risk with the outlay to start with.
This article has done the rounds for a few years, but is always good for a read: Steve Albini's take on label exploitation of bands: The Problem With Music...
[ http://www.negativland.com/albini.html ]