Jump to content


Please note: You can easily log in to MPN using your Facebook account!

How much SHOULD a CD cost?


Recommended Posts

Seems that most people on here say CDs are over-priced. Hmmm... If I pay $15-$20 for a CD that I like, gee, IMHO, I will get far MORE entertainment value from that than $15-$20. Comparitively, it would be way up there. Then you get the duds. I can think of an artist's first CD, which I am nuts over. (Trace Adkins) It's one that is worth a helluva lot more than $20 to me. I like just about every song a lot. Then, based on that CD, I bought his latest. It sucks. I think I like one song. It's not worth much to me. But if you weigh it out, I could still make the argument that $15-$20 is fine. If $15-$20 is too much, then how much lower? If they were $10, I don't know if that'd make much difference. If $5, that would be a big difference. They'd become more like disposable. Can labels afford to sell for $5? I dunno.

> > > [ Live! ] < < <

Link to comment
Share on other sites



  • Replies 26
  • Created
  • Last Reply
Ten bucks would be great! They're paying the artist probably 6 cents each CD anyway, (which will not even see the light of day -or the musician's bank account- because of deductions for promotion, studio time, distribution, management, lawyers, video production, etc, etc.) Oh yes- it's America so it'll have to be $9.99 can't sell anything with a flat price. I forgot. :freak:

"We are the Federales... You know, the Mounted Police..."

---"If you're the police, where are your badges?"

"Bodges?..."

Link to comment
Share on other sites

CDs haven't dropped in price very much even though manufacturing costs have become considerably lower -- I believe that's what most people's gripe is about. I suppose one consolation from LPs is that there is usually more music on it. Sometimes good, sometimes bad if an artist feels like they have to pad the CD with stuff they ordinarily would have left off!
Link to comment
Share on other sites

Yeah, I agree $10 sounds about right. And yes it is a big difference, to me, from $15-20. I mean that's 50%-100% less! Sure there are some records that are "worth" more to me than $20 but did I know that before I bought them? Nope... so what would entice me to pay $20 for it in the first place? Nowadays, I can decide by downloading most of the record first, but the labels don't like that and try to make it difficult. :D And hearing singles on the radio isn't enough - apart from the fact that radio sucks anyway, most people don't want to shell out $20 for a full length CD when they figure probably most of the songs are going to suck. For $10 if I'd heard a few songs or maybe had the CD recommended to me by someone I trust, I'd be more likely to chance an impulse buy. --Lee
Link to comment
Share on other sites

[quote]Originally posted by Lee Flier: [b]Yeah, I agree $10 sounds about right. And yes it is a big difference, to me, from $15-20. I mean that's 50%-100% less![/b][/quote]eerrr... a 100% less would mean they'd be FREE, right? :p A 10 usd/each price over a 15 usd/each price means a 33.33% less. A 10 usd/each price over a 20 usd/each price means a 50% less. TEN dollars is a fair price for a music CD.

Músico, Productor, Ingeniero, Tecnólogo

Director de Ventas, América Latina y Caribe - PreSonus Audio Electronics

 

Instagram: guslozada

Facebook: Lozada - Música y Tecnología

 

www.guslozada.com

Link to comment
Share on other sites

are you guys approaching this answer from the perspective of normal consumers, or musicians? you would think musicians are more sympathetic to high cd prices lately. If you're cd was on the market, wouldn't you want it to make you a good living? $10.00 CAN (about $7 US) is how much i find used cds for here in canada. Most of the new cd's I buy cost me $20(roughly $15 US) And i don't burn cds off my friends except for live shows which only entice you to buy the album. You can download hundreds of shows legally at http://www.furthurnet.com
Link to comment
Share on other sites

[quote]Originally posted by mr. tunes: [b]you would think musicians are more sympathetic to high cd prices lately. If you're cd was on the market, wouldn't you want it to make you a good living? [/URL][/b][/quote]It won't make you a good living if no one will buy it because it's overpriced! --Lee
Link to comment
Share on other sites

Mr.Tunes - if artists made more money as the CD prices went up I'd be all for it. But they don't. When the switch was made from vinyl records to CDs, the prices went up but the artist royalties stayed the same. The only people making more money are the record companies. And then the record companies turn around and screw the artists. Fuck the record companies, they deserve all the bootlegging and lost sales that they get. If they ever start treating the artist fairly then I'll change my opinion, but until then ... fuck 'em. Btw, I own 667 CDs, and that's after some schmuck stole 180 in Halifax. You can't say that I'm some downloading geek who never buys CDs. I believe in the artists, I just don't always believe in the record companies. -- Rob
I have the mind of a criminal genius.....I keep it in the freezer next to mother.
Link to comment
Share on other sites

As someone who owns a small label (http://www.lakefrontdigital.com) here's about how our stuff works out. Note that the costs for a major are much lower. We generally have about $2 of cost in the CD itself. This includes manufacturing, printing, paying for the booklet art, etc. The local stores that are carrying the stuff are paying us right around $10 ea. They then mark it up to $15 or so. The bottom line is we have $8/copy left to pay the artist and recover any recording costs. Of course, we're paying the artists a couple of dollars a copy in royalty. If the stores we going to sell the CD's for $10, I'd be out of business. jw
Affiliations: Jambé
Link to comment
Share on other sites

I'd say $10 for a CD "on sale" and $15 list - maximum. Sure, small labels like John's may be paying $2 for manufacturing costs, but the majors pay significantly less. Mechanicals are around $0.80 per CD. Artists royalties, at around 10% of retail, would probably drop a bit too - this is the Music Industry we're talking about, right? :rolleyes: Anyway, figure around $2.00 per CD for Mechanicals and Artist's royalties, plus another $1.50 for manufacturing costs. Sell to the retailers at $7.00 and the label gets $3.50 gross... with the Artists (hopefully) eventually paying the label back on the production costs. Okay, I've simplified it quite a bit, but I still think a barebones retail of $10 is "do-able". Of course, you'd have to cut back on the payola, er, I mean "independent promoters". ;)
Link to comment
Share on other sites

[quote]Originally posted by mr. tunes: [b]are you guys approaching this answer from the perspective of normal consumers, or musicians? you would think musicians are more sympathetic to high cd prices lately. If you're cd was on the market, wouldn't you want it to make you a good living? $10.00 CAN (about $7 US) is how much i find used cds for here in canada. Most of the new cd's I buy cost me $20(roughly $15 US)[/b][/quote]we dont care about canadian prices ;) well, if you sell CD's at $9.99, its more likely you will sell more of them and the artists ends up making more money.

alphajerk

FATcompilation

"if god is truly just, i tremble for the fate of my country" -thomas jefferson

Link to comment
Share on other sites

I think what the issue comes down to is [i]elasticity of demand[/i] for those who haven't taken economics, this describes how producers determine where to price things. I think major record companies know that the extra few bucks doesn't really affect the average consumer's decisions. It's because everyone is willing to pay these prices that prices are staying the same and getting higher. Oh and how about our friend [b]inflation?[/b]. A few years ago cd's were about $10 new, but now the value of the dollar has decreased Lately most of the cd's I have been buying are from labels like Ninja Tune. This is a small record company(probably pretty big by now), and I will never find a ninja cd for less than $20. But I don't mind paying it because they release quality music that inspires me. I think the Ninja Tune artists deserve every penny of their high prices. It also costs them to import stuff over to North America which contributes to their high prices
Link to comment
Share on other sites

How much should a CD cost? Enough to cover my expenses and give me a decent return if I sell 12,000 at concerts... Not so much that I wince in the process of buying one or four at the local store. Furthermore, since singles are not as plentiful as back in the old (old) days, mostly, we're shelling out $$$ for two or so songs.
Link to comment
Share on other sites

I think CD's should be $1.99. How many businesses do you know of that have a 1000% markup over the cost of production. We are paying for the CD's that are flops. This is another business practice that defies logic. A business without risk, at least for the big labels with enough product to offset losses. Without the defacto price fixing record companies would all be belly up. How did they accomplish this anyway I thought price fixing was illegal in the US?

Mac Bowne

G-Clef Acoustics Ltd.

Osaka, Japan

Link to comment
Share on other sites

[quote]Originally posted by mr. tunes: [b]I think what the issue comes down to is [i]elasticity of demand[/i] for those who haven't taken economics, this describes how producers determine where to price things. I think major record companies know that the extra few bucks doesn't really affect the average consumer's decisions. It's because everyone is willing to pay these prices that prices are staying the same and getting higher. Oh and how about our friend [b]inflation?[/b]. [/b][/quote]"Elasticity of Demand" does not apply to "fashionable" products when they are first released into the open market. You have the product people want, so you fix the price. It goes with clothing, luxury cars... and music. When people is NOT responding to your fixed price, or the fashion is over (new product released, out of season, etc) then the rule of the Elasticity applies... High demand, high price. Low demand, LOW PRICE.

Músico, Productor, Ingeniero, Tecnólogo

Director de Ventas, América Latina y Caribe - PreSonus Audio Electronics

 

Instagram: guslozada

Facebook: Lozada - Música y Tecnología

 

www.guslozada.com

Link to comment
Share on other sites

[quote]Originally posted by Dwarf: [b]Mr.Tunes - if artists made more money as the CD prices went up I'd be all for it. But they don't. When the switch was made from vinyl records to CDs, the prices went up but the artist royalties stayed the same. The only people making more money are the record companies. And then the record companies turn around and screw the artists. Rob[/b][/quote]That's not entirely correct. The actual percentage paid to the artist did not go up (gnenerally 13% - 15%); however, the percentage is based on retail prices. Therefore with each escalation of retail prices the artist has the opportunity to make more money. Rob

Rob Hoffman

http://www.robmixmusic.com

Los Angeles, CA

Link to comment
Share on other sites

[quote]Originally posted by gtrmac: [b]I think CD's should be $1.99. How many businesses do you know of that have a 1000% markup over the cost of production. We are paying for the CD's that are flops. This is another business practice that defies logic. A business without risk, at least for the big labels with enough product to offset losses. Without the defacto price fixing record companies would all be belly up. How did they accomplish this anyway I thought price fixing was illegal in the US?[/b][/quote]That doesn't work because you're not figuring in paying the artist, songwriters and producers, as well as promotions. $1.99 doesn't get you past paying mechanicals and artist royalties. Rob

Rob Hoffman

http://www.robmixmusic.com

Los Angeles, CA

Link to comment
Share on other sites

Seems many cost factors are being overlooked here. Retail space, advertising and promotion being the biggies. An fo course don't forget the posh offices in AL, Nashville, NYC ,etc., for the high level record execs and the multimillion dollare expense accounts for those necessary items such as hookers, limos, private jets, coke, booze that without the industry would just crumble and die. I've read that the average take for a major label artist is 18 cents a unit sold, and from this they are playing back to the label all monies fronted, for recording, advertising, tour expenses, promotional expenses. It makes it easy to see why so many of todays stars are literally broke or massively in debt. Now let's not foget the managers, lawyers, accounts, drug dealers, private trainers...they also get paid from the same pie. then of course unless there's corporate sponsership the label needs to front more money for tour support. Now we got the agents, tour staff, union labor and venue costs, hey are you getting all this down? The pie get's sliced very thin to those who really deserve it. Unfortunately the music business is little to do about art and alot ot do about business, expecially for those in them big cushy offices who have little to no musical training, but make the biggest slices of the pie. So, Bunky, ya still wanna be a rock star?????

Hope this is helpful.

 

NP Recording Studios

Analog approach to digital recording.

Link to comment
Share on other sites

First off, I would NEVER pay 20 clams for a CD. In fact, I've only paid $17.99 twice in my somewhat brief existence on earth (MJ's Dangerous and the Jazzyfatnastees CD, at chain music stores). I pretty much only purchase music at the discount stores and electronic stores. You save at least 4 bucks per CD, and sometimes more. What I don't understand, other than the fact that it's part promotional and only coupled with new artists, is how labels can have the NERD, Jaguar, Remy Shand, and others albums sell for between $6.99 and $9.99...nearly every week? These albums are recorded at pretty much the same places by the same people (generally), but retail for less. So don't say it can't be done...because it IS being done. I love music, and everything is relative, but I get more work out of my DVDs than I do my CDs, for the same price. Even when cleaning I put a movie on. Granted, movies have a chance to profit in the theater, so they "can" be made cheaper in the store. If that philosophy holds true, then after the first few years an album should, too, be made cheaper. But it's not. Many hit albums cost the same now as they did years ago. So thus I say: $9.99. Oh, one more thing...I have to agree with "This Business of Marketing and Promotion" when they say that the perception of a low priced CD is that it's no good. We as "music people" may see it differently. But I think that subconciously, if they see a CD for 10 bucks and another for 5, they'll "think" that the one is better than the other. So, I think that it has to be an overall drop in price. Peace
If at first you don't succeed, keep on sucking 'til you do suck seed!
Link to comment
Share on other sites

[quote]Originally posted by where02190: [b]So, Bunky, ya still wanna be a rock star?????[/b][/quote]No. What I WOULD like to do is pay the bills from CD and merchandise sales and live appearances. But, major labels do not cater to people like us. What I would also like to do is hire people who want to earn honest money for honest work, that is, get an independent promoter (or cut a distribution deal with a label) whereby they make a percentage of every CD sold. Period. We'll worry about the recording budget and all the rest, and we won't blow our own cash on hookers and drugs, and posh offices. We'll make the music and the promoter's job is to market it and get it distributed it for a percentage. I think that would enable us to sell our CD's for 10 bucks. --Lee
Link to comment
Share on other sites

More....take DVD prices into consideration. Most are under $20 and not only include stereo audio but 5.1 surround, video, extra footage and commentary, etc. Plus, with a DVD you get hours of entertainment, where most CD's are under an hour. So I think the argument is that CD's priced around $20 are no longer a good 'value' for Joe consumer.
Link to comment
Share on other sites

[quote]Originally posted by aliengroover: [b]What I don't understand, other than the fact that it's part promotional and only coupled with new artists, is how labels can have the NERD, Jaguar, Remy Shand, and others albums sell for between $6.99 and $9.99...nearly every week[/b][/quote]Real simple: Billboard charts. Think of lower prices as nitrous oxide for sales volume. Selling at a low retail price (under $12.99) generates HUGE initial soundscans for the record label. Particularly for newer artists, the label will scarifice profit for sales volume initially. Since these are still new artists, once they get visiblity on the charts, the radio/retail cycle takes off. It's cheap marketing-the lower price will entice more people to buy, even if they are curious. Without the huge outlay of cash for marketing, lowering the price gets the existing fan base, the new fan base and the curious in one swoop, without the big outlay in marketing like an established artist needs. 100 units at $15 or 150 units at $10 is the same thing for the label-just a different break even point. I got Remy Shand for $11.88 when it dropped and I picked up N.E.R.D.S. for $6.99 from TARGET yesterday. I noticed Jaguar is selling for $9.99 (I got it for $7.99), while also still cheap (I know she isn't feeling this strategy), is still up $2. They will usually increase the price a few dollars after the CD is making moves on the charts. I think the perception that a cheaper priced CD is inferior really has little basis anymore. Most music buyers are pretty well informed and if the buzz has been created on a new artist, the price won't matter-in fact, more people will buy it. Other than Foolish/Unfoolish, how else do you think Ashanti's CD went GOLD so quickly (this week's Billboard has a predicatably sad review of her newest single 'Happy')? With existing artists, a new CD at $11.88 (Best Buy, target, Circuit City) has the same effect to generate volume quickly for charting purposes and giving a new CD and its artist a boost.

Yamaha (Motif XS7, Motif 6, TX81Z), Korg (R3, Triton-R), Roland (XP-30, D-50, Juno 6, P-330). Novation A Station, Arturia Analog Experience Factory 32

 

Link to comment
Share on other sites

A CD should cost as much as you are willing to pay for it. Sounds simple...but that's it...the price will ALWAYS be what the market will bear. So even though some of us think the $10 bucks is high enough...you have a lot of consumers paying $15 to $20 for latest releases. When the consumer stops buying and starts complaining...then things might change. And NO...Napster or any of the other "free" music web sites will not bring those prices down. How's that line go..."Nothing ain't worth nothing when it's free". Having access to unlimited radio promo CDs...I haven't bought one in the last 5 years...oh wait...I just bought 2 from Chesky records. They were the CDs that contained Audio Tests 2 & 3. Cost me $40 with shipping. But I wanted them and was willing to pay that price (there are also GREAT Jazz cuts included on each CD). Now I have all three of the Chesky Audio Tests CDs.

miroslav - miroslavmusic.com

 

"Just because it happened to you, it doesn't mean it's important."

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...