Al
Post by: Bob Olhsson on November 09, 2004, 03:46:28 PM
Of course there is also the slight matter of paying the artists, the composers, the producers, the mastering engineers, the sales and promotion people plus the cost of providing all of the above for the 90% of recordings nobody wants to buy... Post by: TotalSonic on November 10, 2004, 02:38:23 PM
Hi Bob - Of course you're quite right that manufacturing is only a small part of label's operating costs. I still feel that the Big 4 are selling their product at a rate that encourages piracy and diminishes potential for larger income through higher volume of sales. As far as payments to artist and composers - due to cross collateralized contracts the vast majority are lucky to see even a quarter a disc within their lifetimes.
This is where I see a system of distribution dependent on maintaining a physical inventory (which also has costs of transporting and warehousing along with the potential for large amounts of unsold product such as you're indicating) has serious economic disadvantages in comparison to creation on demand (through various methods of digital distribution or on-site burning - such as the recent same-day discs being offered of concerts the night of the show). Best regards, Steve Berson |