How much do CDs cost to make?

[mjquilly]

I'm talking music CD's, but just the production costs, nothing else. I've been looking all over the web for this and all the numbers I've found include the artists fees, advertising, producing... Also, feel free to start a discussion on whether or not you think music should be shared freely on the internet since I'm writing a paper on that right now.

 

[Locutus of Board]

Ya

 

[Killbat]

I suppose somewhere between 1 and 10 cents, probably on the lower end.

 

[Windogg]

IIRC, Silk Screened CD, Jewel Case, Glossy Inserts, Shrink Wrap costs less than $1. The reason why CDs cost so much is because the music companies are look for a resistance point in which consumers will not pay anymore. There was a whole Dateline segment on it. I guess with MP3s it's beginning to bite back.

Windogg

 

[Russ]

<< whether or not you think music should be shared freely on the internet since I'm writing a paper on that right now. >>



YOU BET! Can we also have free cars, free computers, free food, and free houses?

Russ, NCNE

 

[vi edit]

For the actual CD itself, the case, and the paper to make the insert? Probably less than $1.50.

And should music be distributed on the web - yes
Should it be distributed for free - no

I want the bands to get enough balls/power/money/intelligence/ect. to totally cut out the money sucking label companies.

I hope that we will see a time where a band will be able to cut and mix and album and put it up on the web and charge $5 for a album, or $1 a song or something at time of download.

Either that, or hope that bands would be able to sell thier own cd's directly for around $7.

 

[urbantechie]

I sell Custom made and VCDs for $8 and I buy good CDs in 100Spindles for $20 . Lets say I make alot of profit.

 

[Bling Bling]

hey urbantechie: you want a business partner by any chance?

 

[JeffreyLebowski]

This is the FBI we need to.. Um, check your merchandise Sir.

 

[urbantechie]

Hehe, I work solo only . FBI? Rrrrrriiiiiiigggggghhhhhtttt

 

[mjquilly]

I agree w/ you 100% vi_edit about artist breaking away from the labels. Fortunately, there is a vastley growing movement of artists starting independent and staying that way. Lesser known artists on large record company contracts earn less than artists of the same fame who choose to be independent, plus they are the ones w/ the control. And shouldn't the artists be in control? Record companies are there to help w/ production costs and promotion, but they absorb waaaayyy too much control.

 

[atom]

It's really a shame how much control record companies have over an artist's material once they have that signed contract. But for now the only way to get mass distribution is through scum sucking record labels, money is a hard thing to pass up.

And urban, if those are bootlegs, I am LMAO. If you can find saps to buy that junk for $8.00 I've got some premium bottled tap water I wanna sell them.

 

[urbantechie]

<< if those are bootlegs >>

 

[DefRef]

Courtney Love has been railing against the labels and is probably gonna release future Hole records herself. (Like anyone cares...)

It costs a local artist (hometown hero level) about $1.50-$2.00/ea. (based on ordering just 1,000) depending on how elaborate the printing gets. This is just pressing and doesn't include the cost of recording and package design, etc. The labels probably spend around $1.25/ea. cuz they buy them by the hundred thousands.

The $19:Q MSRP CD wholesales for $12. After the artist recoups it's advances, it gets paid about $1.25 per unit sold. So, where does the other $9.50 go? Payola (now called promotion), advertising, videos (think those eye-popping effects are free?), packaging, distribuion, overhead, hookers, blow, limos and some PROFIT.

Check out Courtney Love Does The Math at Salon.com for her thoughts on the state of the biz and Steve Albini's The Problem With Music, which was written a few years ago (numbers are on the low side) but really lays out just how screwed many musicians are.

Remember, if you just Napster and burn all your music, you may think that you're just hurting the Evil Record Companies, but in the end, you're KILLING OFF the bands that entertain you, cuz they'll be put down before the labels go under.

 

[Mday]

CDs used to cost $0.50 to make.

now it's much less.

packaging cost money, but not that much. you pay more shipping it to places than you pay to make the entire thing.

 

[Zucchini]

Don't forget the hot sellers also help recoup the losses from the cds that tank

 

[billandopus]

The problem with the music industry is that the &quot;man&quot; has all the power. Artists have to sell their soul to the companies who then take the lion's share of all profits and pretty much determines who is successful and who is not. It is a very one way street.

Bucking the system won't work for 99.99 percent of the groups out there and the only ones who can even think of controlling their own distribution or destiny are the super power groups/individuals ... who already played the game and make the companies millions before having the opportunity to challenge them for control.

Obviously, when the industry is under attack they have all the resources to defend themselves because it's the little artists that are the front line warriors and they are the ones that suffer first rather than the corporate fat cats.

This is why mp3's and the distribution of music on the Internet has the music companies and the industry running scared because it's a threat to their traditional way of doing business.

Anyways, this all leads to why cds are so cheap to produce but why prices are so inflated and the impetus behind the pricing controls depending on what particular area of the world you live in.