Tuesday, March 28, 2006

Copyright Schmopyright

Ok, so I agree with J, especially since I'm a lawyer and much of what I do involves copyright. But, let's face it, the music industry had this coming. CDs cost less than $1.00 to make, royalties add up to about $3.00 or $4.00, so on a $16.99 retail, the label profits over $10.00 per unit. Yeah, yeah, I've heard it all...it costs to package, it costs for this, it costs for that, but you get my point. The labels haven't been hurting for a long time. So they're hurting now. Maybe if they stop selling CDs? Maybe if they stop suing everyone? The direction of music is clear, and it's not the CD. There are better ways to spend money.

Anyway, I was interested to read in US News that some labels are testing CD locks, which allow music to be played in any CD/DVD player, but when it comes to the computer, there are limitations, i.e., anticopying technology. So, what do the 20 million plus iPod users think about these limitations? I don't know, but I can assure you that the iPod is inconsistent with anticopying technology.

My point is not that copyright should be abolished. Rather, you can't 'un-ring' a rung bell. Focus on the future.

It's a fun time to watch or be involved with the music industry.

~ Brock


J@TheScrutiny said...

Whoa buddy…looks like some funny math…at least you’re not an accountant. I think my views on record companies and all should be a separate post, which I will try to get to shortly, but I must comment on the “label profits over $10.00 per unit. To start with, the label does not sell retail; they wholesale, if they sell at all. Most use a distributor. A label will be paying a 20% to 35% fee to have distribution. If the distributor sells to the store for 35% to 55% off retail. At a 45% discount, the distributor receives $9.34. If the label is paying a 25% distribution fee, the label receives $7.00. This is an ideal situation. Now take off your manufacturing and royalties. Then remember that you paid between $50,000 to $200,000 to record the record. This doesn’t account for any marketing dollars that will go into the project if you want it to sell. No keep in mind that many of your records will never recoup their cost.

As far as “CD locks”…that is one the stupidest things I have ever heard. Music needs to be 100% portable.


B@TheScrutiny said...

You're one of the evil label people, aren't you!

J@TheScrutiny said...

Hardly. I just know the lies told about record companies.


wholesale said...

ya, sure!

-The wholesale distributor man