Quote:
Originally posted by JackSpratts
interesting observation and an answer may be that pirates actually find the true value of a compact disc. any higher and they lose the sale to a free download. any lower and the burn's not worth it economically.
- js.
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Right on the money, Jack.
In two decades the CD pricing has gradually lost almost all connection to the real manufacturing costs and this is one of the main reasons why p2p has been such a shock to the music industry. Instead of gradually adapting their economy and business models to the changing technological environment - which computer and blank media manufacturers have done - the record companies have instead concentrated on lobbying the copyright legislators in the hope of being able to continue their overcharging practices. 2-3 US$ would indeed be a competitive price for CDs even in the p2p era, leaving a clear margin above the industrial manufacturing costs and making the product again attractive to the consumers. CD sales would almost certainly multiply in numbers and the total turnover might well increase too but to make a profitable business out of it would require major restructuring in the record industry. Instead of 1-2 % success rate and huge promotion budgets for a few chosen megastars the industry should aim to a much more economical model based on profitable operation with most of their signed artists.
- tg
