The Mudcat Café TM
Thread #52064   Message #795894
Posted By: dick greenhaus
02-Oct-02 - 07:58 PM
Thread Name: Record Labels settle for CD price fixing
Subject: RE: Record Labels settle for CD price fixing
CDs are probably the cheapest form of recording that has ever existed. And it's almost impossible for any small label or self-produced CD to make a buck. Problem, of course, is volume.

Pressing a CD involves a minimum of 500 copies--more economically realistically, 1000. If you're Alison Krause or Ralph Stanley, it's not difficult to sell that many. If you're not as well-established, you're going to have a house full of shiny coasters for a long time.

If you want to include a booklet, that's apt to cost considerably more than the CD. So is the kind of artwork that promotes impulse buying.

Selling through retailers is also a problem. Stores aren't apt to be eager to display unknowns and mail-order operations (like CAMSCO) can sell only what customers order. Distributors are reluctant to stock unknowns, and so retailers have to order their CDs directly from a vast number of artists. And remember, neither distributors nor retailers can afford to pay the producer full retail price.

I'd venture to say that the bulk of sales of folk recordings by lesser-known artists occures at events at which those artists are performing. They're probably best viewed as a means of supplementing the gig fee than as a noticeable profit center.

Pop recordings are said to hit gold or platinum sales; folk sales are better characterized by things like pine or birch.