Originally posted by Shaktai
Let's get a few things clear about the economics. The physical CD before burning costs about 3 cents if you buy the cheapest available. Actual production of a finished CD for reasonable quality costs about 50 cents. That is only the CD production, not the packaging, shipping, etc. which adds quite a bit more. Now then add on the additional costs of anti-theft measures that must be added on the retail end (as in anti-shoplifting) and retail overhead. Don't forget the royalties that have to be paid to the artists. We are now at a few "Dollars". Then you have to factor in the "big dollar items" such as marketing, promotions, etc. Then there is the retail profit. Before the record lables even get their cut, they have to pay out several dollars per CD just to get it out there. Yes they make plenty of money, but it isn't the very excessive amounts some folks use to justify their pirating. The retail outlets typically make more per unit profit then the record companies, who make their money off of volume.
As to the Apple Music Store, I for one really like it. I always have a hard time remembering the names of songs I like, but know them when I hear part of them. By being able to listen to songs I was able to find just the ones I wanted and spent about $17 for a total of 24 selections. (one album plus several singles) A bargain for the smart shopper.
