Future of The Music Industry

Friday, January 14, 2005

payment breakdown comparison CD vs. Itunes

ITunes Breakdown:

Artist:
$0.99 download single song price to the consumer
less $0.34 to Apple
left $0.65 x 130% ( wholesale markup) x 12% (net artist net rate) = $0.10

Producer
$0.99 download single song price to the consumer
less $0.34 to Apple
left $0.65 x 130% (wholesale markup) x 3% (producer rate) = $0.025

 

CD Breakdown:

Here is a price breakdown from CD sales from Furdlog

This breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail shows where the money goes for a new album with a list price of $15.99.

$0.17 Musiciansunions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead

http://msl1.mit.edu/furdlog/index.php?p=2658

 

 

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