CDs - where did the money go?

Discussion in 'The Pub' started by OlAndrew, Jan 19, 2015.

  1. OlAndrew

    OlAndrew Member

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    As many others have said, I stopped buying new CDs when the price, out the door, went way over $10. I buy a few direct from artists, or used, these days.

    For years and years, albums, whether vinyl or CD, except some European classical and jazz recordings, were about $10. Then they started going up and up til now.

    Now, some years ago, I looked at having CDs made for a group I was working with. At the time, I could get them, in lots of 100, for $1.50 apiece.
    I had to supply master tapes and artwork for the insert. (It may be more now, I know). This from a rather small local outfit.

    A large company, ordering in large lots, probably from somewhere in the Orient, could likely get that down to $0.50 or 0.75 apiece, maybe less.

    Artists are always complaining about how little they get from CD sales. (Look up "Courtney Love does the Math", well worth reading). I don't know how much they get, $0.05 a disk, $5.00 a disk, is that before or after 'recoupables' etc.

    So if we're seeing $20 out the door, and in some states $2 of that is tax, where does the other $17.50 go? There's 'production costs' of which one suspects much is born by the artist, and much is 'creative accounting' or invented. There's shipping and warehousing and all that, but does anyone have a cost breakdown on these things?

    The IMPRESSION is that most of the money goes to make a bunch of suits very rich, at the expense of everyone from the artist to the public.

    Can anyone here tell us where the money goes?
     
  2. taez555

    taez555 Member

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    It pays the people involved in the process.
     
  3. Xian Forbes

    Xian Forbes Member

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    Studio time, paying producers to write the songs, shipping this'd heavy things, fronting the two hundred bands that flopped before the record and publishing company had a top ten hit, blah blah blah. Last but not least the artist get a meager cut of the action.
     
  4. Tylenol Jones

    Tylenol Jones Member

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    It's the distribution channels, stores, staff, rent, etc.

    Removing them from the equation brought down the price for CDs to an unprecedented low. Same thing with online music purchases.
     
  5. Serious Poo

    Serious Poo Armchair Rocket Scientist Graffiti Existentialist Gold Supporting Member

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    FWIW, the manufacturing equipment necessary to press production quality CD's, DVD's and Gaming disks is very, very costly. I've spent some time in several of the disc manufacturing plants that produce disks for the world's most popular movie, music and game titles; the size, complexity and scope of the machinery and facilities was mindblowing to say the least.

    What kills me is that with the move to digital media, the price to the consumer for albums didn't change from when there was physical media.
     
  6. fredgarvin

    fredgarvin Member

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    Which probably fueled a lot of piracy.
     
  7. Xian Forbes

    Xian Forbes Member

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    A lot of things haven't changed but somehow it appears I've got less and less disposable income than five,ten,fifteen years ago.
     
  8. loudboy

    loudboy Member

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    Manufacturing has never been cheaper - cost is between $1-2, per disk.

    Usually around $1.40 or so, w/the biggest factor being printing.
     
  9. aynirar27

    aynirar27 All You Need Is Rock and Roll Gold Supporting Member

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    more hands in the cookie jar
     
  10. LordThurisaz

    LordThurisaz Member

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    Gotta love the Motown deal model. Been ripping off musicians for more than half a century at least.
     
  11. tone4days

    tone4days Member

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  12. A-Bone

    A-Bone Montonero, MOY, Multitudes Gold Supporting Member

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  13. Bobby Wasabi

    Bobby Wasabi Member

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    And it's getting harder and harder to pry that disposable income from my hands. I buy less "stuff" nowadays, that's for sure. Good for me, probably bad for some CEO's bonus.
     
  14. AZChilicat

    AZChilicat Member

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    This article leaves absolutely no room for conspiracies, "creative accounting" claims, etc. It's never going to fly here, buddy!
     
  15. TheoDog

    TheoDog Silver Supporting Member

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    Opened thread to make sure this was posted.
     
  16. S. F. Sorrow

    S. F. Sorrow Member

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    Not sure if you remember but in the mid 80s when CDs were commercially available -vinyl was about $6-$7. CDs were about $12. The powers that be said CDs would go down in price once the demand took off. Guess what? They never went down.
     
  17. A-Bone

    A-Bone Montonero, MOY, Multitudes Gold Supporting Member

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    On the other hand, when compared to historical vinyl prices using adjusted figures, CDs ended up being proportionately less expensive than LPs of the 60's at least by some point in the 90's.
     
  18. raph

    raph Member

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    Soon the illuminaughty will come up with a new format with great new features™, improved sound™, with all new hardware requirements, interconnects, etc... We'll pile on to buy our music all over again and the distribution channel will be happy.
     
  19. taez555

    taez555 Member

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    Nah... the future is cloud storage, where you need to pay a monthly fee to access your music on-line. In a world where no one owns physical copies, the gatekeepers will own your music.
     
  20. raph

    raph Member

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    Not if the digital format is too big to stream!
     

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