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1 new of 160 responses total.
I can't see any reason why CD's should cost more than paperback books. The "raw" cost of the CD proper is probably pennies. It's certainly less than $.20. It's obvious that mass produced CD's are essentially "free" - how otherwise to explain the drove of CD's companies such as AOL have delivered to every american household with a postal address. Clearly a naked CD is cheap enough to be a cereal box giveaway. The jewel case & artwork of a commercial CD may have cost more than the actual CD. The royalty due to the artist under most current contracts is clearly not much more. A few exceptional performers may actually get rich, but they are just that--exceptions. Most of the cost of a CD in a store should be the cost of distribution and marketing. That is not unreasonable; we pay similar fees for food in stores with no qualms, and welcome being able to get tomatoes grown in California in winter without the necessity of a plane trip to negotiate with a farmer for purchase and transportation of fruit on an individual basis. The real question is what is actually a reasonable fee for having a CD in a store? In the paperback market, when you buy a paperback, you aren't actually purchasing just one book, but several -- the ones you didn't buy are the ones that get pulped (curtesy of the "magazine" model having overtaken the book industry in the 70's), so in essence you are buying at least $1-$2 worth of paper -- and they still manage to make a profit at "only" $6.95. Another completely independent way of coming up with roughly the same figure is to look at the cost of "naked" software bought in Taiwan. In this market, untrammelled by any real copyright restrictions, you can purchase virtually any software title you please for only $5. You aren't paying anything to microsoft, so the costs you pay are 100% production and distribution. The major risk (ie, additional cost to you the consumer) is that the police might stage a raid and seize some product, but this is low because they usually telephone ahead and warn the vendors. $5 is close enough to the going rate for paperback books that I think this is pretty obviously the "right" price. If anything, this is generous, perhaps the price should be lower. So this $18 / CD is clearly a ripoff. I found it annoying that in this recent agreement in which the record companies and distributers did not admit they had been practicing price fixing, that the corrective actions agreed to did not include lower prices. Apparently nobody representing the real injured party, the american consumer, was properly represented in court.
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