What should be a fair price for a new cd?

Discussion in 'Music Corner' started by Tyler, May 12, 2003.

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  1. Tyler

    Tyler Senior Member Thread Starter

    Location:
    Hawaii
    Not wanting to thread-crap in the "Downloading Myth" thread, I've started this one.

    In that thread, ATR brought up a good point. Lower prices of new cd's would probably cut down on music piracy. But how low should the price be?

    Most large chain stores charge around $16.99 for a new cd (average). While new releases are discounted by a couple of dollars. Of course you can find discs cheaper online, and there's always the used cd stores (which the RIAA also hates).

    I think if cd prices fell to $12.99 you'd see sales increase. While the high cost of cd's aren't the only reason for mp3 downloading (see the downloading myth thread) they certainly don't help.
     
  2. Grant

    Grant Life is a rock, but the radio rolled me!

    I think $12.99 is a perfect premium retail price point for new major-label CDs.
     
  3. Gary

    Gary Nauga Gort! Staff

    Location:
    Toronto
    If one can record music on a $1.00 CDR, the only way to compete is to sell a manufactured CD for $1.00.

    People will cross six lanes of traffic to buy gasoline that's three cents cheaper. Lets see.... a fill up of 20 gallons.... that's .... three cents times 20 gallons.... .60 cents.

    "Consumer savvy"?
     
  4. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    A fair price would be $4.99...Double sets $9.99...
     
  5. Drew

    Drew Senior Member

    Location:
    Grand Junction, CO
    Thats right. How do you compete with free?
     
  6. Dave

    Dave Esoteric Audio Research Specialistâ„¢

    Location:
    B.C.
    They should lower the price to $9.99 and then the consumer won't be so hesitant to try new artists works out, whereas now my money goes only what I know is a good recording.

    Must be the crowd I'm hangin' with.....:D
     
  7. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    Attractive packaging! Just like in real life...We're so visual...:laugh:
     
  8. bldg blok

    bldg blok Forum Resident

    Location:
    Elmira, NY
    There's a thread in here about a BMG sale that occurred a few weeks back where they waved the S&H charges which normally add about $2.59 per title. I took advantage of it and one of the titles I picked up was the Patti Smith "Land" 2 CD compilation for $10.79 incl. tax. Nice booklet, liner notes, and the 2nd disc is material picked out by the artist herself. IMO, that's a fair price. Hate to think what a retail outlet would charge.

    IF I could find titles of that quality for that kind of price, my consumption would increase, but given the way things are, I'll just have to wait til the next time they waive the S&H.
     
  9. Mike

    Mike New Member

    Location:
    New Jersey
    You increase the price of "free". :D

    College Students Settle Suits Filed by Recording Industry

    By NICK WINGFIELD
    Staff Reporter of THE WALL STREET JOURNAL

    Four university students sued by major recording companies for operating campus-wide programs that let users download music and other files have reached settlements under which they will each pay between $12,000 and $17,500 to the recording industry.

    Under the terms of the separate settlements, the students, without admitting guilt in any of the recording industry's allegations, agreed to disable Web sites that allowed users at their respective schools to find songs and other files located on computers throughout their campus networks. The students, who were sued in federal courts in Michigan, New Jersey and New York last month, also agreed not to knowingly violate copyrights on sound recordings by using the Internet to distribute music.

    Daniel Peng at Princeton University in New Jersey and Joseph Nievelt at Michigan Technological University in Houghton, Mich., agreed to pay $15,000 to the recording companies, while Jesse Jordan and Aaron Sherman from Rensselaer Polytechnic Institute in Troy, N.Y., agreed to pay $12,000 and $17,500 respectively. The students will make the payments on installment plans over the next several years.

    The settlements resolve the first phase of what could be a risky legal gambit by the major record labels, including AOL Time Warner Inc.'s Warner Music, Sony Corp.'s Sony Music Entertainment, Vivendi Universal SA's Universal Music Group and Bertelsmann AG's BMG, to combat online music piracy, a phenomenon the labels blame for declining music sales. Recording industry executives said the lawsuits have resulted in at least 18 campus-wide file sharing networks being taken down, adding that they may ask for stiffer settlement terms in future legal actions.

    "The message is clearly getting through that distributing copyrighted works without permission is illegal, can have consequences, and that we will move quickly and aggressively to enforce our rights," said Mathew Oppenheim, senior vice president of business and legal affairs at the Recording Industry Association of America.

    But in suing individuals, particularly university students, analysts and attorneys believe the recording industry may risk alienating a wider swath of music fans.

    "It's very unfortunate that the recording industry, in trying to protect their profits, has used the legal system to intimidate students who are often their best customers," said Howard Ende, an attorney at Drinker Biddle who represented Princeton's Mr. Peng.

    While the recording industry alleged that the students were operating campus file-sharing networks modeled on Napster, representatives of the students said they did little more than run search engines akin to Google that let users find any kind of digital file, including songs. "He has never stolen anything," said Andy Jordan, the father of defendant Jesse Jordan.

    Mr. Jordan added that his son's $12,000 settlement "happens to be the same amount of money that is the total of his bank account. That is money he has saved up over the course of working three years ... to save money for college." Messrs. Nievelt and Sherman didn't return calls for comment.

    Suing individuals for sharing music, movies and other copyrighted material may become a more common legal tactic by the recording companies. Last week, a federal judge in Los Angeles ruled that two providers of file-sharing programs, StreamCast Networks Inc. and Groskter Ltd., aren't violating copyright laws with their software. The ruling, if it survives an expected appeal by movie studios and recording companies, could force media companies to concentrate their legal efforts on individual users, legal experts predict.
     
  10. msimonov

    msimonov Senior Member

    Location:
    New England
    Attractive packaging! Exactly even throwing a 3.5 " DVD with a couple of 5 min clips would be a great add on. It is not very trivial to copy a DVD and
    it will give good reason to buy a package and not burn a copy.
     
  11. Jason Brown

    Jason Brown Forum Resident

    Location:
    SLC, UT
    That's what I think too. I think that's a feasible price, and keeping it to 3 digits makes it much more attractive than going any higher.
     
  12. CM Wolff

    CM Wolff Senior Member

    Location:
    Motown
    Personally, on average I buy about three discs a week, usually between $12.99 and $14.99. The math doesn't work, but I would probably double the number of discs at $9.99. To me there is something magic about the ten dollar bogey. Besides buying more, I would be more likely to take a flier on an unknown artist. Right now, my buying is skewed to 2/3 historical, 1/3 new - at ten bucks a pop, I would probably get to at least 50/50.
     
  13. bartels76

    bartels76 Forum Hall Of Fame

    Location:
    CT
    Some record companies (i.e. Sony) do lower the prices for newer/not yet established artists to around $9.98. Pete Yorn and Robbie Williams were $5-7 when they first hit the stores (the chains lowered the sale price below list). The new Jack Johnson is $ 8.99 this week. Some record companies are doing it. It's the catalog artists that tick me off. Peter Gabriel's non SACD remastered catalog is $18.98 list price (or around that area) with no bonus materials. That makes no sense in my book. The Beatles have somewhat of an excuse since they are the Beatles but Peter Gabriel doesn't.
     
  14. Dave

    Dave Esoteric Audio Research Specialistâ„¢

    Location:
    B.C.
    This is exactly why I chose $9.99.;) It's the whole psychological game of staying in business.
     
  15. stever

    stever Senior Member

    Location:
    Omaha, Nebr.
    Under $10 would be a big attraction for many buyers. If record companies don't do something soon, very few in the business will be making money. I understand everyone has to get paid, but I'm so tired of the overt price gouging. The recent $19.98 list price I've seen is absolutely ABSURD! I also dislike the practice of adding DVDs or extras AFTER the CD has been on the streets for weeks or months, ala Johnny Cash's latest.
     
  16. musicfan37

    musicfan37 Senior Member

    I would like to see the price set at about $7.99. The cost of manufacture is so low these days; it's criminal to charge anything past $10, imo.
     
  17. Steve Hoffman

    Steve Hoffman Your host Your Host

    C'mon!

    You think manufacturing is the only cost in releasing a CD? Recording, mixing, mastering, art work, liner notes, publicity, legal fees, artist royalties, publishing royalties, distribution costs, returns, defectives, advances, etc.
     
  18. Rob LoVerde

    Rob LoVerde New Member

    Location:
    USA
    I like to think of it this way...

    Say I'm buying the Zombies "Greatest Hits" on Audio Fidelity...

    Would I pay 20 dollars for a band to write and perform these songs while an engineer recorded and mixed them? Not to mention the research involved all these years later in finding the masters, and having them compiled and mastered beautifully by Steve, THEN having the disc manufactured in GERMANY and shipped to my house?

    I consider the 20 dollar price tag a STEAL and I'd surely save a few bucks walking to my local record store, to boot!

    When I consider ALL the factors in making a record, I think they are priced just fine...
     
  19. Rob LoVerde

    Rob LoVerde New Member

    Location:
    USA
    Plus...Speaking of downloads.

    Sometimes I want to ask the music-buying-public: "Does anybody remember the THRILL of BUYING music???"

    I absolutely LOVE taking a trip to, say, Tower Records in Lincoln Center, NYC and browsing the racks to find, oh, what's this? That Black Sabbath CD I've been meaning to pick up! I almost forgot! The trip home with the CD in my hot little hands. Getting the stereo warmed up as I unwrap the package. Hitting play as I look at the (ok, often cheap) CD booklet. Filing the CD in my ever growing collection. For heaven's sake, it's like going on a date! With foreplay, sex and the whole kit-n-kaboodle!

    What I'm essentially saying here, is that I simply can't compare the experience of old-fashioned good ol' record shopping with the chintzy instant gratification of computer downloading. For me, music consumption is not just about hearing the song...
     
  20. joefont

    joefont Senior Member

    Like anyone else, I'd prefer paying as little as possible for [fill in blank]. As someone who has been buying LPs/CDs for the past 35 years, when you consider the normal inflation curve, CDs are priced about where they should be. Nothing's changed really. I remember when the Beatles' white album first came out, Tower was charging $11.99; an enormous sum back in 1968, even for a double-album.
     
  21. Tyler

    Tyler Senior Member Thread Starter

    Location:
    Hawaii
    There is much more cost associated with releasing a cd than just the manufacturing. I think my price is fair to the record labels, retail stores, and the consumer (12.99).

    Cd sales are being eclipsed by other forms of media, DVD most notably. For around twenty dollars you can purchase a DVD with hours of entertainment.

    Right now DVD sales are high because of value for your money. The typical Hollywood budget is astronomical compared to a album by an artist on a major label (marketing and executive perks not withstanding).


    Record stores can't stay in business selling discs at $7.99. The label needs their cut, and so does everyone who collects royalties. Record stores don't make a ton of money (I know because I used to work in one).

    I want to get music as cheap as I can, but as long as it's a FAIR price. I think a $12.99 list price will spur more spending on cd's. It's just the shot in the arm the industry needs right now.

    At least then the labels can reap some benefits from their catalogs. Maybe it will tide them over until more quality new music is released. Qualiity and value, I guess that's the main factor in this discussion.
     
  22. Jamie Tate

    Jamie Tate New Member

    Location:
    Nashville
    That was going to be my point too. There's several new acts that are priced around $10.

    I've been paying $10 for the Peter Gabriel SACDs too. There's a used CD store here that has a respectable amount of new CDs priced at $10. The Gabriel SACDs are the same price. It's the busiest record store in town. They also have the best selection of vinyl too.
     
  23. Gary

    Gary Nauga Gort! Staff

    Location:
    Toronto
    Exactly why I said $1.00. It's impossible. I hope that's what everyone picked that idea up from my previous post. :sigh:

    Don't forget that the record companies are companies. Manufacturing costs, acountants, accounting departments, mailroom, building leases, plant and property maintenance, etc. have to come into play.
     
  24. Doug Hess Jr.

    Doug Hess Jr. Senior Member

    Location:
    Belpre, Ohio
    Hey Steve,
    Maybe you can shed some light on this. Using yourself as an example, give us a breakdown on what it might cost for Recording, etc. the new (hypothetical) Steve Hoffman Band project so we can see why a CD costs so much. I think a lot of us are under the impression that that record execs are making all the money and the artists are getting shafted and it is all unjustified.
    Doug

     
  25. stereoptic

    stereoptic Anaglyphic GORT Staff

    Location:
    NY
    thanks for clarifying your statement, Gary! For a minute there, I thought that you were serious.

    I agree. The record industry has been trying to compete with CD-R copies with the value-added packaging. I prefer digipaks over jewel cases, but there is still some improvement needed to help protect the product (ie. tight spindles, broken spindles, better photo reproduction, etc.)

    Is it just me, or does everyone else treat their CD-Rs like the bastard children of their collection? Do you sperate them from the rest of your organized (alphabetical, chronological, emotional, etc.) collection?



    :thumbsup: :thumbsup: you'll get no argument here!! The rest of the music bying public doesn't know what they are missing; most of the time they go straight to the Top 40 wall and then directly to the register. IN A MALL CD STORE NO LESS!!! List price $19.99!!!

    THis is a great incentive, if only these stores would actually play some of the music in the store instead of.... well,you know, that's another thread..:)
     
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