Linked by Thom Holwerda on Thu 4th Oct 2012 14:11 UTC
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Member since:
2008-06-24
A HUGE chunk of the overhead for music is all of the production and promotion work that goes into making the original copy, so to speak. A lot of people have to get paid money to make it all happen, especially on the promotion side. The costs of making a hard copy (CD, case, printed material) are very low, and in volume is likely less than 50 cents per copy. So changing the distribution medium from a CD to an MP3 file still doesn't change their cost structure by much.
And before I get pounced on, I'm not promoting the outrageous pricing structure they have in place for music, movies, or games. On a personal note though, I think buying a song for a dollar is fine and even a good deal for a song I like. The part I hate about it is how little of that dollar is actually given to the artist. It is a far cry better than paying $20 for a CD just to get that one song.
I long for a day when we can buy directly from artists and cut out the middle man entirely for these things.