[AlanG]

10. "There's only one answer to piracy: lower CD prices."

In an ideal world everything would be free. Artists wouldn't need money to buy instruments. Record companies wouldn't invest money in recording. Designers and retailers would donate their time and talent scouts would not have any costs. Best of all, tax wouldn't exist. But let's face it, this is the real world. And legitimate companies who invest in and create music cannot be expected to compete with music taken and given away 'for free'. Whether we like it or not, all businesses have overheads and the business of music is no exception. Huge costs are spent on developing talent, from finding it to recording, producing, promoting, marketing and distributing it.
while at the same time the people who actually create the product through their own talent and skill get screwed over by the record execs. Oh hold on their was a giant pang of sympathy that I heard from the bottom of my heart.

It is also true that most criticism of CD prices springs from a misunderstanding of how much royalty, distribution, marketing and artist and repertoire development is reflected in the price of every CD that's sold. That's the real costs of a CD - not the cost of the disc itself.
yes and even less percentage points that then go to the artist who makes the CD possible more than anyone else. Heres an idea, MP3 online means no promotion costs or manufacturing costs, so thats that cut, distribution is switched to pay for bandwitch and the money rolls in and is divided between less people. What a wonderful idea...

It is another myth that studio executives pocket huge profits on everything they release. Profit in the business is rare - for every ten CDs the record companies put time and money into, generally only one brings a return on the original investment. Meanwhile the recording industry reinvests up to 25% of its turnover in new artists.
and the reason profits are so low? Because of the huge amount spread towards a tiny minority of artists. Because of the huge amount spent on lawyers and other hangers on.

Music is still excellent value for money compared with other entertainment products; the 'cost per hour' of consuming music is significantly cheaper than books and other print media, cinema-going and mobile phone use. Buying an album is an investment in music that you will own for life.
could that be the reason then that from 2000 onwards while consumption of all forms of entertainment media fell, music fell by the smallest percent, so although sales were falling, the music industry was not losing anywhere near as much ground as all other forms of entertainment media including DVD/Movies/Games etc

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11. "None of the money from online sales goes to the artist anyway."

You're quite right if you mean unauthorised online use! This is the major problem with unlicensed sites - the artist and everybody else in the chain doesn't get paid. If you mean legal downloads, this is simply untrue. Record companies pay artists royalties on sale of downloads in the same way as for sales of CDs. The share of the sale price that the artist receives depends upon the terms that the artist and record company agree and set down in the artist's contract.

lets examine the statement made:
"None of the money from online sales goes to the artist anyway."
when has this *ever* been claimed by anyone, ever? People claim that a small minority of the sales of CDs goes to artists, which is true, generally 12-13% minus 10% to managers etc. But this is teh first time Ive seen this claim anywhere.



Anyhoo, that concludes Alans monthly rant at music industry leeches.