Off: CD cost breakdown

[Rudich, Robert A]

Saw this on another list and thought it would be of interest.   Certainly
explains the desire to crank out compilation discs.   Still can't figure out
why the HW remasters go so dearly, don't know even if the market will bear
it.

Rudy

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 Where does my money go when I buy a CD?

    The Washington Post ran a report on this subject on February 15,
1995.  Based on information from the RIAA, Billboard Magazine, and
elsewhere, they broke down the $11.99 street price of a typical hit
new-release CD as follows:

        $ 2.00  Record-label profit + Executive salaries
        $ 1.40  New artist development
        $ 1.15  Distribution
        $ 1.10  Manufacturing (CD + artwork + jewel case)
        $  .85  "Other"
        $  .80  Performer royalties
        $  .65  Songwriter royalties
        $  .65  Advertising and promotion
        $  .35  Producer
        $  .30  Recording costs
        $  .25  Music videos
        $  .20  Managers and lawyers
        $  .10  Artist pensions
        ------
        $ 9.80  Wholesale cost to retailer
             +
        $  .95  Miscellaneous retailer expenses
        $  .90  Store personnel salaries
        $  .75  Rent
        ------
        $12.40  Total cost to retailer
        $11.99  CD price at retail
        $  .41  Loss to retailer