adamslim;149945 Wrote: 
> I wholeheartedly agree.  Music is not cheap to produce; much of the best
> music is not commercial (e.g. BBC Radio 3) and may well not be able to
> pay for itself.  Starting a band costs a fortune in promotion, as well
> as recording costs.
> 
> How on earth can the $10 CD price not be justified?  If you play it ten
> times, that's a dollar for an hour's entertainment.  I have CDs that I
> have played hundreds of times; I can't think of anything that is better
> value (DVDs I pay $20 for and play once?  No thanks!)
> 
> I agree that it may increase the record companies' bottom lines if they
> reduced prices - their unit sales might increase dramatically.  However,
> such a strategy is very risky - once you do it, there's no going back.
> 
> Blue paints the music industry as suited thugs; I've met a lot of
> people in music, and none of them were thugs (some *were* suited!). 
> Most of them are great people who love music, and would love to find a
> solution to the current problem.
> 
> There may be a few very big players who are doing well, but must of the
> guys I know are much smaller; they're struggling and get really upset
> when they see their artists, on whom they have spent a huge amount both
> financially and emotionally, getting pirated.  They can't invest in new
> music if they don't make profits from their existing ones.
> 
> AdamTo be clear, I differentiate in my mind the media industry and
musicians.  I thought it was clear I was alluding to the media
industry, those that own the music and sell it as the 'suits'.  

With regards to the comment above "How on earth could a $10 CD not be
justified?"   The industry can charge what the wish, I ask for no
'justification'.  However, I do suggest that the CD price seems to be
artificially fixed at the current price of $12-$15 over the last 20
years without adding value (while computers remain at a $500 to $1500
cost, their computing power aka value, has dramatically increased).  

So how does one price a CD?  If the price were indeed just a reflection
of recouping the costs of production plus a fixed profit margin, then
simple logic dictates that the cost to record/produce and
manufacture/distribute an album 10 years ago versus today should be
dramatically lower given technology advances (even including inflation
costs, etc.).  

So, say the above is currect and the cost to produce an album has gone
down in cost.  Is the media industry obligated to pass the cost savings
onto the consumer? No.  They can price the CD however they want to. 
They do not have to justify any price.  However, in a free market where
price is not artificially fixed, since there is more margin in the CD
price, logic again says that someone will try to undercut someone
else's prices and start lowering their price.  The price of CDs should
naturally float to a lower stable price point until more technology
advances occur.  Has this happened?  No.  Something is gumming the
works up artificially.   

On the other hand, lets say my reasoning above is not accurate.  Lets
leave the costs of CDs alone all-together.  Lets now look at the online
price of a song.  I question the $1 per song online price.  They have
taken the entire physical production and logistics component out of the
loop (and replaced it with a far less costly technology computer
distribution method) and yet the price remains almost exactly the same
as a CD per song?    Either the media industry was losing money on the
sales of CDs (surrre) or they have artificially set the online song
price high.  Why in the world would they do that?  I don't know why,
but I think it is because they want to stifle the online sales channel.


Am I a socialist who thinks people "deserve" free things?  No. I
support real capitalism which needs free markets.  The media industry
is not that.  True competition looks different than the media industry.
I believe that as alternative methods that lower the net cost to the
consumer have sprung up over the last 5 years (not just piracy) they
have been ruthlessly and short sightedly cut down.  There is a cost for
this policy.


-- 
blue
------------------------------------------------------------------------
blue's Profile: http://forums.slimdevices.com/member.php?userid=798
View this thread: http://forums.slimdevices.com/showthread.php?t=28858

_______________________________________________
discuss mailing list
[email protected]
http://lists.slimdevices.com/lists/listinfo/discuss

Reply via email to