Re: The Future of Music (was: Re: e-book pricing)

From: Zero Powers (
Date: Wed Aug 02 2000 - 21:33:50 MDT

>From: Max Møller Rasmussen <>

>Fra: Zero Powers
> >Its no secret in the music industry that over 75% of the cost of a CD
> >into manufacturing, packaging, distribution and record company profit.
> >about 1/5 of the price pays for actual production of the recording and
> >payment to the artist. It is *only* that 1/5 that I have any desire to
>The cost of a CD consists of several layers:
>Music video
>Advertising campaign
>Distribution (transport/stores)
>sales tax
>A CD-Production costs about $1 including packaging and printing of the
>So yes you can save that.
>You can also save most of the distribution costs. Especially as bandwith
>gets cheaper.
>But that still leaves:
>Music video
>Advertising campaign
>sales tax

If I'm purchasing an MP3, and *only* an MP3, I don't feel I should have to
pay for:

Graphic-artwork (don't come with the MP3);
Music video (don't come with the MP3);
Advertising campaign (I get no benefit from that);
sales tax (so far the net is still pretty much tax free, and that's fine by

>A million artist doing their own website for promoting music will not do
>that. I have no time to search all that information. I don't even have time
>to do it on as they take in everything. All I have ever heard (well
>almost all) on is demo quality at best. An artist is not the best
>judge of his own work. Thus I want a filtering infrastructure that can give
>ME the high quality music that I like.
>This is what a recording company should do (You can also call them editors,
>critics etc. Same difference.). So I don't think they will go away. I don't
>want them to go away.

True, the recording companies do perform the much needed job of filtering.
However, looking at it from a cost-benefit analysis, I don’t think that
service is worth the huge chunk of the cost of the CD that I pay for that
service. I think the filtering job could be done just as well (if not
better) and much more efficiently by other methods. Say commercial radio,
word of mouth, etc. So, while I agree with you that record companies will
not be going away anytime soon, I for one would not be sad to see them go.


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