How Much Should a CD Cost?
March 3rd, 2008How much are you willing to pay for a music CD? Is that number different for your favorite artists? For me, there is a point where I won’t pay – no matter how much I favor the artist. And I realize that that price point is lower than it used to be.
I love music. I enjoy buying music and supporting the people responsible. My appetite for new music is greater than my financial situation can handle. I have cut my college habits of downloadery and found solace through podcasting. I can subscribe to an endless amount of free programming and engage in all kinds of new music and conversation. I acquire less albums than I used to, and when I do buy a new album I make it count.
If possible, I try to buy albums directly from the band at a concert. You might not be aware, but artists make considerably more profit from sales at concert. The record label relationship is a rat-hole I’ll save for another day. Let’s just say the band might earn $1/unit sold at HMV, compared to 100% (minus manufacturing) from sales at a show. Bands survive from merchandise profits.
Recently I saw Hawksley Workman in concert. I would consider myself an enthusiast fan. I own several albums. I know the lyrics, and wouldn’t miss an opportunity to catch his show. I brought extra cash planning to buy at least one album. He has a new album Between the Beautiful, and several rare EP’s that I would love to hear. Red light: cringingly, CD’s are $20 each.
When I was in highschool, I worked at a record shop. I can remember new releases ranged between $14.99 and $19.99. An older album could cost upwards of $27.99. This was long before the prevalence of iTunes and Amazon. Nowadays, HMV has plenty of selection around $12. As previously stated, I’d rather buy direct from the artist when possible. I have to put my foot down on the $20 album.
I’m no economist, but there must be a sweetspot pricepoint. Above which will discourage purchasing. Below will encourage impulse purchasing in volume. I was sad to leave the show without a tangible token from the show. Had they been $15, I would have bought two. But at $20 I didn’t buy any.
What is your pricepoint? Do you even buy music anymore?
Tags: Music, Selling
Posted in Mu$ic Theory | Comments (3)
March 4th, 2008 at 10:35 am
Hey Joel, nice new blog.
Just wanted to point out that even artists on independents have to kick back a percentage of album sales at concerts back to their labels (well, some of the time, anyways). Not sure where you saw Hawksley play, either – but sometimes venues and/or the person selling the merch is taking a cut as well. So artists will sometimes raise the price to compensate.
I agree with you that $20 seems like a lot for an album at a show. Just wanted to say that it’s likely that not all of the $20 minus manufacturing costs is going to Hawksley himself (although I think it’s very true that most bands make their real cash from merchandise).
March 4th, 2008 at 11:03 pm
I definitely have a different price point for my favourite artists…which is another way of saying, those are the only albums I have actually purchased in recent years. Most of the music I have in my collection has not been paid for (shh, don’t tell anyone).
Honestly, my price point is just about $0 these days. I’ve been spoiled by the internet. I want it now, and I want it cheap.
What are the options?
Order a CD and wait. I don’t want to wait. I’m excited about it now.
Go to the store. But it’s $5 more expensive than Amazon.ca – price point.
Download it legally. All the DRM hassles. If I pay for it, why can’t I just have it?
As for your scenario…at a show, CD in hand…that’s a hard one. Probably comes down to whether I could acquire the music from other places. I would be willing to accept a higher price from an independent or unsigned band than from a more establish act.
It’s weird thinking this out. Discovering all the multi-tiered criteria I have constructed to justify my theft of music.
March 4th, 2008 at 11:34 pm
Digging the new blog.
As for the CD situation, I agree wholeheartedly that $20 is an unacceptable price for a CD at any vendor, retail or direct. As you stated, I have about a $15 maximum for music purchase, excluding some sort of special/limited edition (what can I say, I am a sucker for cool packaging and the promise of exclusive art and DVDs). Generally speaking now, most new releases run from $9.99 to $14.99 depending on artist, label and the aforementioned special editions. I buy most things from the bands I love, directly if at all possible. For bands I don’t know or am unsure of, typically I will download some stuff and try it out, if I like it then I will purchase their album, if not, DELETED!
I also read not to long ago, a very compelling argument for basically downloading the bands music illegally and then buying a t-shirt or other merchandise of that sort instead of purchasing the album from the record label. More money for the band and less money for the record label. Sounds about right to me.
This is also an interesting read if you have a few minutes.
http://www.demonbaby.com/blog/2007/10/when-pigs-fly-death-of-oink-birth-of.html