the cost of CDs

AlanG · 26th March 2008, 08:27 AM

Found this interesting article from Rolling Stones. Wal-mart complaining about the cost of CDs, as well as discussing loss-leading.

Wal-Mart Wants $10 CDs : Rolling Stone

There is an interesting table at the end of it:

For a CD that costs $15.99

Quote:

$15.99.

$0.17 Musicians' unions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists' royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead

The artists royalties is pretty high here and artists won't get any until their advance is paid back, but it easily shows why Amazon etc are cheaper than stores: $4.69 off straight away, around 30% of the retail cost. Then because the retail cost has dropped the royalties which are percentage based drop too, so the price is a smidgen lower than that.

RealR · 26th March 2008, 07:14 PM

Possibly not the greatest break down, but it's no wonder Amazon etc can undercut stores so easily. Personally I think shops do have one advantage over online shopping... browsing!

I imagine most people who want to buy a specific CD will look for cost. Your average high street has higher costs & higher pricers so yeah they will lose out... however often I'll go into HMV, Virgin etc to have a gander at CDs etc and buy one. That's not as likely with online shopping which is more "search" orientated. Perhaps rather that focusing on the price they should look at the strength of high street stores and look at providing the consumer with more to browse?

Then again, Amazon has recommended me CDs/DVDs/Books that I've gone on to buy.

kj · 26th March 2008, 08:10 PM

Stats like this really do make it harder to justify, for selfish reasons, buying from a store rather than the internet.

SamL4 · 26th March 2008, 11:45 PM

I always try and buy from a local indie shop. I refuse to buy from HMV, Virgin ect.

inDundee · 12th April 2008, 10:07 PM

Groucho's remains my favourite place for buying CDs - but then I don't tend to buy the latest chart stuff... :-)

RiseAgainst · 12th April 2008, 11:46 PM

i tend to buy from where's cheapest, at the end of the day thats all that really matters to me.

SamL4, do you also do all your grocery shopping at independent grocers or do you go to tesco?

Thee Alex · 13th April 2008, 06:51 PM

These days I buy everything online, as it's very unlikely that the latest WZT Hearts, Hawksley Workman, Lucky Dragons, or Julie Doiron album is going to turn up in HMV, Zavvi (stupidest name EVER), or even local indie store.

If I'm not that bothered about the packaging I'll pay even less and download it from iTunes, Boomkat, or Play.com, as everything ends up ripped and on my iPod anyway.

Curate · 13th April 2008, 07:15 PM

I must admit, I but quite a lot of stuff second hand from Amazon. It can lead to a wee bit of guilt though - I got Pinkerton the other day for £1.50 plus p&p.

Keerin · 14th April 2008, 10:02 AM

Quote:

Originally Posted by RiseAgainst

SamL4, do you also do all your grocery shopping at independent grocers or do you go to tesco?

that's a good point.

26th March 2008, 08:10 PM	#3 (permalink)
kj gimp Join Date: Aug 2001 Location: Scotland Posts: 13,287 Band: A band of merry men	Stats like this really do make it harder to justify, for selfish reasons, buying from a store rather than the internet. __________________ This community cannot survive without your continued support. galleries \|\| links directory \|\| profiles \|\| wiki

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26th March 2008, 07:14 PM	#2 (permalink)
RealR Senior Member Join Date: May 2004 Location: Dundee Posts: 4,128 Band: They are make believe	Possibly not the greatest break down, but it's no wonder Amazon etc can undercut stores so easily. Personally I think shops do have one advantage over online shopping... browsing! I imagine most people who want to buy a specific CD will look for cost. Your average high street has higher costs & higher pricers so yeah they will lose out... however often I'll go into HMV, Virgin etc to have a gander at CDs etc and buy one. That's not as likely with online shopping which is more "search" orientated. Perhaps rather that focusing on the price they should look at the strength of high street stores and look at providing the consumer with more to browse? Then again, Amazon has recommended me CDs/DVDs/Books that I've gone on to buy.

26th March 2008, 11:45 PM	#4 (permalink)
SamL4 Registered User Join Date: Sep 2006 Location: Aberdeen/Glasgow Posts: 87 Band: 45 A-Side Records	I always try and buy from a local indie shop. I refuse to buy from HMV, Virgin ect.

12th April 2008, 10:07 PM	#5 (permalink)
inDundee Registered User Join Date: Mar 2007 Location: Dundee Posts: 8	Groucho's remains my favourite place for buying CDs - but then I don't tend to buy the latest chart stuff... :-)

12th April 2008, 11:46 PM	#6 (permalink)
RiseAgainst Senior Member Join Date: Aug 2004 Location: Work id presume Posts: 2,555 Band: Cheat To Win	i tend to buy from where's cheapest, at the end of the day thats all that really matters to me. SamL4, do you also do all your grocery shopping at independent grocers or do you go to tesco?

13th April 2008, 06:51 PM	#7 (permalink)
Thee Alex Senior Member Join Date: Sep 2001 Location: Solihull, West Midlands Posts: 3,643 Band: Thee Moths, Wülfstabber, Explosions and Screaming, Catface, DJ Wrong Homer, Señor Citizen, Thee Infinite Golden Universe, Sports, WRRRMS, former member of Lipsick!	These days I buy everything online, as it's very unlikely that the latest WZT Hearts, Hawksley Workman, Lucky Dragons, or Julie Doiron album is going to turn up in HMV, Zavvi (stupidest name EVER), or even local indie store. If I'm not that bothered about the packaging I'll pay even less and download it from iTunes, Boomkat, or Play.com, as everything ends up ripped and on my iPod anyway.

13th April 2008, 07:15 PM	#8 (permalink)
Curate Registered User Join Date: Nov 2007 Location: Leith Posts: 191 Band: Curators	I must admit, I but quite a lot of stuff second hand from Amazon. It can lead to a wee bit of guilt though - I got Pinkerton the other day for £1.50 plus p&p.