On Friday, March 9, 2001, at 05:13 PM, Tony Finch wrote:
> Jeffrey Kay <jkay@ENGENIA.COM> wrote:
> >
> >Of course, you pay for those things. But there's a substantial amount of
> >money that retailers make from the CD's they sell. I don't know what the
> >delta is between the wholesale and retail prices, but it's got to be in the
> >25% to 50% range.
>
> No way! Less than 10%.
>
Tony's right. Musicblvd.com typically made $1-1.50 per CD on the normal
price of $10-12. So "sales" were loss leaders. That's a pretty cutthroat
margin.
Figure an average artist (NOTE: this is the typical condition for
first big hit) royalty is 8-16% unless they're way big or own the label,
That leaves the labels with the huge piece of the pie. No wonder they're so rabid about Gnapster et al. Hits them right in the belly.
And Eminem ain't all that rich yet.
Chuck
Chuck Murcko
Topsail Group
http://www.topsail.org/
This archive was generated by hypermail 2b29 : Fri Apr 27 2001 - 23:13:55 PDT