antiGUY gives his top 5 list of music stuff. Could be songs, people, a stupid trend... nothing is sacred to antiGUY

This Months Top 5

Top 5 Reasons CD's Cost so much.
This month's Top 5 is a little different. The topic of the high cost of CD's has been in the news lately, with 28 states suing the record companies for price fixing. I read an interesting article that said that CD's cost about $1.00 to manufacture and the record companies turn around and sell them to retailer's for around $9.00. The Retailer's turn around and sell them for between $16 an $19. Not a bad profit, eh? We can assume that $3.00 of the markup on the CD goes towards the retailer's operating expenses, rent, the light bill, insurance, IRS (Maybe another $3 goes here) and the minimum wage paycheck for their employees and the rest is profit. Ok this is business and they are in business to make money.

This month I take a look at where that original $9 the retailer is paying might be going to. I do not work for a record company, so I have to take some guesses here, but this should be a fun example.

I know this won't be a popular statement but I have to make it. It is easy to bash record companies, stories abound about how they screw artists over left and right. But I must say that the people I have dealt with at record labels (publicist) really do believe in the artists and do what every they can to make them successful.(Most of the time). With that little disclaimer, here is this month's Top 5.

Top 5 Reasons CD's Cost so much. (where does the money go?)

5) $1.50 to make the CD and ship it to the stores

4) $1.50 for kickbacks, bribes and promotional expenses to get the music played on radio.

3) $3.00 to the Record Label - $2.00 profit and $1.00 towards "Tour expenses" like record company execs Hotel Suites, limo's, Peruvian Nose Candy etc.

2) $2.00 to make videos MTV will never air and buy magazine ads no one ever reads.

Number one

And $1.00 goes to the lawyer who wrote the contract that screwed the artist out of any profit from the sale of the CD.