RE: Labels

From: Dirk van den Heuvel (dirkv@groovedis.com)
Date: Fri Jun 16 2000 - 19:20:04 MET DST

  • Next message: Nasir Rasheed: "RE: Labels"

    Elson,
    That's just a little too simplistic. The production costs of a CD are maybe
    $1.35 but that doesn't take into account artist royalties (and therefore
    advances), recording costs (not including mastering which can is part of
    $1.35 or so), mechanical royalties, promotion & marketing, label overhead
    and admin costs and many other little assorted bills. And keep in mind the
    usual cost of a CD to a distributor (in other words what the label charges)
    is between $6.50 on the low end and about $8.00 on the very high end. The
    money between that and what you at the store goes to distributors (and their
    costs) and a much bigger slice to the retailer (and their costs). If labels
    were to sell to you direct with no middlemen needed the cost could come down
    to $7-8 tomorrow...

    FYI: I am not pro label, pro artist, pro major, or pro indie (I may be pro
    distributor, but that's because I like being able to eat and pay my rent
    :). I'm just pro good music. Period.

    Dirk van den Heuvel (dirkv@groovedis.com)
    Groove Distribution
    http://www.groovedis.com
    Your Guide To The Underground

    -----Original Message-----
    From: Elson Trinidad [mailto:elson@westworld.com]
    Sent: Friday, June 16, 2000 11:51 AM
    To: angedella isafella
    Cc: acid-jazz@ucsd.edu
    Subject: Re: Labels

    angedella isafella wrote:
    >
    > Dear list: I heard that labels rarely ever lose on a cd.

    Oh obviously. It costs like, what, $1.35 to produce a CD at cost, and they
    sell
    for $13-$18 retail?

    Plus, record companies who had albums pay for themselves many times over as
    LPs
    (i.e. any Beatles album, Pink Floyd's "Dark Side of the Moon," "Eagles'
    Gretest
    Hits" etc get even more profit as releasing them as CDs (and even more when
    they
    put out "limited edition digitally remastered" versions).

                                                     - 30 -

     :. elson trinidad, los angeles, california, usa
     :. elson@westworld.com
     :. www.westworld.com/~elson

     [ the futurethnic beats of e:trinity - www.e-trinity.org ]



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