Record labels
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- armed_rob
Im wondering if record labels make more or less money by selling music at iTunes than selling it on CDs?
- ukit0
Less. Just look at the plummeting profits of the music industry from 2000 on.
- morilla0
they have different % pay out scales depending on the labels contracts and the artists.
- Folgers_Crystals0
The record industry pulled one over on consumers when CD's came out. They cost a tiny fraction of the cost of a cassette to produce, yet they charge more for it at retail.
Same for digital downloads - no overhead for printing, pressing or shipping stock. Pretty much the same cost to buy the album.
So - on an individual basis - a given album sold on iTunes makes them more money than the same album on CD.
In the long run, it really depends on the numbers sold through each channel as to how the final profits work out.
- I couldn't agree more. this has been my gripe for a long time.Point5
- ukit0
Well consider that the cost of manufacturing a CD = approx 30 - 50 cents.
In the heyday of the industry, they were selling albums for $17-19 at those big chain record stores. On iTunes the standard price point is $10.
- Meeklo0
Actually, considerably less (I know this from 2 established independent labels)
iTunes might reach a lot of people, but like ukit says, people are not buying full albums anymore, most people get 1 or 2 tracks.
Price is cheaper per album when you buy digitally (for the costumer) but for the artist can be more expensive, they don't have to worry about distribution or packaging, but iTunes take a huge cut of the sale (more than %70) Other specialized sites like beatport or trackitdown are a bit easier on independent artists, by taking less % but are not as popular, and prices are higher on consumers too
- itunes doesn't take 70%.
i get .79$ for every song sold on iTunes.ross
- itunes doesn't take 70%.
- TheBlueOne0
It's kind of an unfair comparison. On a direct price to price ratio, they prob make more on downloads over time. However, overall less people are buying music overall, so that's why you see the industry numbers drop for sales overall.
- Actually, just reading up on it CDs sales are a lot more profitable.ukit
- So it's actually both - less sales and less profitukit
- Die, record industry, dieukit
- notice I said "over time"TheBlueOne
- if we compare "overtime" digital vs "overtime" hardcopy its still considerably less thoughMeeklo
- lazerbass0
yeah in general mp3s are way less profitable but I'd practically guarantee that there's more than a few artists who have found a market exclusively on itunes or beatport that will never consider making cds...especially beatport
- this is true!
but he was asking about record labels not indie artistsMeeklo - ever hear of indie labels? they know this much toolazerbass
- some labels are marketing their artists to beatport almost exclusivelylazerbass
- beatport and the new list of electronic/dance music siteslazerbass
- That a niche market, though, we're talking about 1% of the industryukit
- this is true!
- Point50
technology has provided convenience for people: convenience to share, steal, download or whatever you want to call it. We all know the feeling of paying $15 for CD, getting home and finding out that the only songs worth a shit on the whole fucking album are the two that you heard on the radio or saw the videos for on MTV. It's almost a blind purchase. The internwebz, p2p networks and CD dup/ripping let people avoid that fucking headache. You would think the record industry would take a hint and maybe produce quality, but instead, most of the shit they put out is pure hype. And getting music for free isn't getting people to like it any more than if they paid for it. Shitty music is still shitty music, no matter what the price.
- ukit0
It's a tough challenge. What do you do when technology more or less makes your entire business model obselete in a matter of years?
- lackofcolor0
I run a small label and I bring in more money from digital sales but make more when I sell a physical cd.
- akrokdesign0
the artist is making more by selling on itunes. (then before)
- armed_rob0
thanx for all the info guys