RE: The Future of Music (was: Re: e-book pricing)

From: Zero Powers (zero_powers@hotmail.com)
Date: Tue Aug 01 2000 - 22:06:26 MDT


>From: hal@finney.org
>
> > I think some serious thought ought to be given to the honor system /
> > shareware paradigm by artists in general, and musicians in particular.
>As a
> > for instance, I recently Napstered Macy Gray’s excellent album, and am
> > enjoying it so much that I’d be *happy* to pay for the album (albeit at
>a
> > steep discount, since I neither have nor want the CD medium or the fancy
> > packaging).
>
>You'd only get a "steep discount" if a substantial part of the costs are
>due to the CD medium and the packaging. What evidence is there that this
>is true? Isn't it well known that CD manufacturing costs are far lower
>than
>the price of the CDs? The plastic packaging can't cost that much, either.
>I don't see why you'd expect a substantial discount purely due to this
>difference in distribution.

Its no secret in the music industry that over 75% of the cost of a CD goes
into manufacturing, packaging, distribution and record company profit. Only
about 1/5 of the price pays for actual production of the recording and
payment to the artist. It is *only* that 1/5 that I have any desire to pay.

-Zero

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