One of the most common complaints we see when writing about consumer dissatisfaction with CDs is "price gouging" by greedy corporations. Several Stereophile readers have written that they"know" CDs only cost pennies to make, so $16.98 is a rip-off for a product that should sell for under $10.It's true that the cost per disc of manufacturing is well under a buck, but there are lots of other expenses that add up to make that disc so expensive—especially for small labels, such as John Marks or John Atkinson's efforts. Yes, labels with acts like Madonna or the dreaded Britney Spears can make gazillions, but the two Johns, for instance, could have made more money with a lot less effort by putting their money in a different kind of CD—a certificate of deposit starts generating interest from the moment you create it and a small label compact disc may take years to recoup its expenses.I'm not making the argument that the major labels are philantropists—I think they're mostly clueless, greedy, and stupid and many of their problems are self-inflicted wounds. I don't know how small, musically-passionate, quality-driven labels can cut prices given the current business model.
This article gives us a "same but different" insight into book publishing.Via Boingboing.
