RIAA - Cost of making a CD

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Anthony
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RIAA - Cost of making a CD

Post by Anthony »

Is it just me or does here explaine nothing...
RIAA wrote:Of course, the most important component of a CD is the artist’s effort in developing that music. Artists spend a large portion of their creative energy on writing song lyrics and composing music or working with producers and A&R executives to find great songs from great writers. This task can take weeks, months, or even years. The creative ability of these artists to produce the music we love, combined with the time and energy they spend throughout that process is in itself priceless. But while the creative process is priceless, it must be compensated. Artists receive royalties on each recording, which vary according to their contract, and the songwriter gets royalties too. In addition, the label incurs additional costs in finding and signing new artists.
I love how they say the artist's (who is making very little) work is "priceless".
RIAA wrote:Clearly there are many costs associated with producing a CD
And clearly they make that all back...
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Post by DADINK13 »

It costs less than ten cents to make a CD. It's the largest profit margin ever. Why are they complaining??
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Post by Anthony »

Very simple. There are people that know nothing about technology that they can get to think that it is costing more then it really is. In that "article" it is very careful to NOT say how much it costs to make a CD. The title is a complete lie, in which they (as far as I'm concerned) are going to say how much it costs to make a CD... NOT what the sale of a CD pays for.
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Post by harra »

Basically, they (RIAA) are stating that there are a compenents of the process of creating a CD that one can't easily put a price on (hogwash). Those components are the "creative energy" they talk about.

Yes, it costs less than 10 cents to burn a CD (I would argue less than 5 cents), but I believe a majority of the cost of the $15-21 CD is to cover R&D (research and development) for new acts, marketing, and the cost of studio time. I laugh at the studio time. Many labels basically charge themselves for the use of the studio. Some even go as far as taking the cost of the studio time out of the royalties the artists receive from the sales of their music.

Everything coming out of the RIAA and the MPAA is a load of crap. They are very good at twisting the truth and making the uneducated public (AKA the lawmakers) believe their industry is something they aren't.

I would argue that the entertainment industry is guilty of price-fixing, collusion and a bunch of other business practices that got a lot of industries prior into a lot of trouble (dairy, oil, coal, gas, etc).

Also remember this old adage from ECON 101, "Something is only worth what someone is willing to pay." If we keep ponying up the money for marked up CD's, they will keep charging the price and keep upping the price. Why do you think a movie ticket is as much as it is.
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Post by Anthony »

Here I go changing my own subject again (and even worse supporting a Record company), but one of the larger labels actually just recently did a company wide price break (Universal Music)...
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Post by Timelessblur »

Well I say if you add in all the cost to make a cd case and all plus lets add in the cost of playing the artist and all that stuff. It prouble cost them 2-3 bucks on average per CD they make. (this is counting all there artist) and I am over estemeting.
that also figuring in all htere employ pay checks. we will max out at 5 bucks a cd. That still a 400% profic from each cd. Now in most areas of the market the profect margin is around 20-30% max. most of the time it only like 2-5%.

Basilcy they are bitching because oh damn we only made 350% profiect his year in stead of 400%. RIAA CEO "Damn I only get 5mi in bonces this year instead of 6 mill on top of my 10 mill dollor sallery." I think it a lot of BS coming out of them. I like the one company that drop there cd cost to the public to like 12 bucks. that still over 100% profec.
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