Recently the RIAA issued a report explaining why CD prices are so high. The report was heavily biased towards the prices, being that the RIAA is just a tool, disguised as something else. I am sure many of you have noticed the prices of many cds rocketing towards 20 bucks each in some cases. While you can still find decent prices if you shop around, for the most part you are paying much higher prices then inflation alone can explain.
One of the arguments that the RIAA makes is that while the actual physical cost of making a cd might be less then a dollar, the many costs that go into that process is what makes it so high. They talk about the cost of the studios, paying the artist, mixing and so forth....and the report acts as if they are not even making money at 20 bucks a cd. Their argument takes some truth, but stretches it greatly in my mind. While I understand the cost that go into making a CD, the biggest problem with their argument is the vast differences between the price of CDs and Tapes. If you are making a large number of albums, the actual physical cost of the cassette is higher then the cost of the CD. So if their argument is that most of the cost you are paying for your music is in production, why then do tapes sometimes cost half as much as a CD? While a small band who makes maybe 1000 albums might find tapes to be cheaper then CDs by a small amount, when you are making 10,000 or more, the CDs are cheaper to make.
If the record industries are making profits on tape sales in the 10-13 buck range, then they can do that with CDs as well.
One of the arguments that the RIAA makes is that while the actual physical cost of making a cd might be less then a dollar, the many costs that go into that process is what makes it so high. They talk about the cost of the studios, paying the artist, mixing and so forth....and the report acts as if they are not even making money at 20 bucks a cd. Their argument takes some truth, but stretches it greatly in my mind. While I understand the cost that go into making a CD, the biggest problem with their argument is the vast differences between the price of CDs and Tapes. If you are making a large number of albums, the actual physical cost of the cassette is higher then the cost of the CD. So if their argument is that most of the cost you are paying for your music is in production, why then do tapes sometimes cost half as much as a CD? While a small band who makes maybe 1000 albums might find tapes to be cheaper then CDs by a small amount, when you are making 10,000 or more, the CDs are cheaper to make.
If the record industries are making profits on tape sales in the 10-13 buck range, then they can do that with CDs as well.
