where does your money go when you buy a cd

[breaklose]

taken from the latest rolling stone, "Wal-Mart Battles Labels Over CD Prices." theres a graphic in the article showing that for a $15.99 cd :
- $3.89 go to "Retail Overhead"
- $2.91 to "Label Overhead"
- $2.40 to "Marketing Overhead"
- $1.70 to "Label Profit"
- $1.60 to "Artists Royalties"
- $0.90 to "Distribution"
- $0.80 to "Retail Profit"
- $0.82 to "Publshing Royalties"
- $0.80 to "Packaging/Manufacturing"
- $0.17 to "Musicians Unions"

 

[Strangelight]

It would differ on all different levels though, depending on the label and individual contracts etc

 

[breaklose]

yeah i guess theyre just average figures, but that gives a rough idea about the situation.

 

[Strangelight]

Aye, if they did one about label income it would be interesting too

 

[my dying groom]

- $3.89 go to "Retail Overhead"
- $2.91 to "Label Overhead"
- $2.40 to "Marketing Overhead"
- $1.70 to "Label Profit"
- $1.60 to "Artists Royalties"
- $0.90 to "Distribution"
- $0.80 to "Retail Profit"
- $0.82 to "Publshing Royalties"
- $0.80 to "Packaging/Manufacturing"
- $0.17 to "Musicians Unions"

 

[Strangelight]

http://www.negativland.com/albini.html

 

[best]

this overhead thing sucks, you can actually put anything as overhead cost and assign it to the cd, its a very dirty accounting trick.

 

[MoonsOfJupiter]

The coercion techniques used by these labels are really goddamn slimy.

 

[Sopel]

$1.60 to "Artists Royalties"

still you can buy 1-2 beers (depends on country) from it. not so bad

 

[pagan2002]

http://www.negativland.com/albini.html

brilliant link that dunc

 

[Bastet]

omg! brilliant yes, i didn't have a clue.

so duncan can you give an example of a band that could be in this situation? i mean, i don't think metallica has these kinds of problems, right?
( and if you have other interesting things on that matter: i'd like to read them)

 

[Allan]

You might wanna check the links section on the Strangelight site.

 

[Bastet]

thanks allan, i will

 

[Strangelight]

omg! brilliant yes, i didn't have a clue.

so duncan can you give an example of a band that could be in this situation? i mean, i don't think metallica has these kinds of problems, right?
( and if you have other interesting things on that matter: i'd like to read them)

I know a few bands that signed to majors but their albums were never even released. Most of them never recovered from that and the bands split. For some bands it works out fine, and they probably couldn't exist on an independent. Thats fair enough like, but it's a shame for the ones who waste years of their lives under dodgy promises of fame and fortune etc. even if its their own fault for being naive. Could happen to any band who cant be arsed learning the business side. I still get ripped off today by supposed 'underground' companies and that, so its not just majors who are greedy. The internet is a fucking great medium though. Not just for promoting your music, but also getting to learn the score about things and that.