[Date Prev][Date Next][Thread Prev][Thread Next]
For those interested... I found this in the rec.music.collecting.cd FAQ: (I
assume all prices are American)
C005 Where does my money go when I buy a CD?
The Washington Post ran a report on this subject on February 15, 1995.
Based on information from the RIAA, Billboard Magazine, and elsewhere,
they broke down the $11.99 street price of a typical hit new-release CD
$ 2.00 Record-label profit + Executive salaries
$ 1.40 New artist development
$ 1.15 Distribution
$ 1.10 Manufacturing (CD + artwork + jewel case)
$ .85 "Other"
$ .80 Performer royalties
$ .65 Songwriter royalties
$ .65 Advertising and promotion
$ .35 Producer
$ .30 Recording costs
$ .25 Music videos
$ .20 Managers and lawyers
$ .10 Artist pensions
$ 9.80 Wholesale cost to retailer
$ .95 Miscellaneous retailer expenses
$ .90 Store personnel salaries
$ .75 Rent
$12.40 Total cost to retailer
$11.99 CD price at retail
$ .41 Loss to retailer
These figures make it clear that everyone but the label is getting a
royal screwing. Label profit, salaries, distribution (usually label-
owned), manufacturing (label-owned again), and "other" (a.k.a. "hookers
and cocaine for the label VPs") add up to $6.50/disc -- or more than half
of a CD's retail price. The people who actually make the music (the
performers, songwriters, and producers) get less than a third of that.
I do my part just by NOT BUYING CD's that cost over $20. It's not that hard
-- there's always a sale somewhere, if you're willing to wait. That's the
only way music companies are going to get the message -- if you don't buy!
Patrick Wilkins Proud Survivor of Shad Valley Acadia 1994
Imprint Staff (UW's largest student newspaper!)
CKMS Radio Board and Staff (Beautiful Music for Ugly Children --
100% CanIndie, Sundays Midnite-Two AM 100.3 FM)