Re: Comments please

From: Tony Finch (dot@dotat.at)
Date: Fri Mar 09 2001 - 14:27:24 PST


I had an interesting experience finding these bits -- the first Google
page with more advertising than links!

http://www.google.com/search?num=100&hl=en&lr=&safe=off&q=cd+%22cost+breakdown%22+manufacturing+marketing+retail+a%26r+packaging+royalties

This is Canadian and old, but it seems to agree with my numbers...

          Table 14: Breakdown of Average CD Sales Dollar
                       - Major Labels, 1993

                                         Foreign Lease Master Cdn. Major
                                                     per unit per unit
                                                          ($) ($)
Retail Price 16.00 16.00
Markup 4.90 4.90
Retail Cost 11.10 11.10
Distribution .55 .55
Label Costs:
      Mechanical to Publisher .20 .20
      Mechanical to Author/Composer .40 .40
      Lease Fee/Royalty 3.30 2.003
      Marketing & Promotion 1.10 3.00
      Recording & Video Costs .00 Note 4
      Manufacturing2 2.20 2.00
      Bad Debts and Obsolete Inventory .55 .55
      Contribution to Admin, A&R and Profit 2.80 NA

1. The Majors' cost breakdown estimates are based on our discussions with Major labels.
2. Manufacturing includes pressing, graphics and packaging.
3. Subject to recoupment.
4. Not normally calculated on a per unit base, as discussed in Table 15.

Tony.

-- 
f.a.n.finch      fanf@covalent.net      dot@dotat.at
SHANNON: SOUTHWESTERLY 4 OR 5, OCCASIONALLY 6, INCREASING 7 FOR A TIME IN FAR
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