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R/E/P => R/E/P Archives => Brad Blackwood => Topic started by: Alécio Costa - Brazil on November 08, 2004, 10:34:29 PM

Title: Trying to eliminate Piracy: SMD (???)
Post by: Alécio Costa - Brazil on November 08, 2004, 10:34:29 PM
Hi,
I have just received a brazilian magazine concerning what they claim to be a solver to the problem of CD piracy. It is called SMD: Semi Metalic Disc.
Although they do not describe  exactly what it is, to me it looks like a variation of a CD single or similar to those old compact vinyl records with 4/7 songs.
It says that it can reduce up to 80% the final cost of a CD to the end consumer.
I promise to publish more info as I get it.

R
Title: Re: Trying to eliminate Piracy: SMD (???)
Post by: bblackwood on November 09, 2004, 08:59:07 AM
Interesting. I can't find anything about it online - does the magazine have a website?
Title: Re: Trying to eliminate Piracy: SMD (???)
Post by: TotalSonic on November 09, 2004, 10:50:45 AM
Al
Title: Re: Trying to eliminate Piracy: SMD (???)
Post by: Bob Olhsson on November 09, 2004, 03:46:28 PM
TotalSonic wrote on Tue, 09 November 2004 09:50

 If labels wanted to reduce the current retail price for already existing CD's - they could do so by 80% and still make a substantial profit by selling direct - there is no need to invest in a new technology to do this...

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...
Title: Re: Trying to eliminate Piracy: SMD (???)
Post by: TotalSonic on November 10, 2004, 02:38:23 PM
Bob Olhsson wrote on Tue, 09 November 2004 20:46


Of course there is also the slight matter of paying the artists, the composers,


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.

Quote:

 plus the cost of providing all of the above for the 90% of recordings nobody wants to buy...


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