I have a really hard time understanding $15 cds and $1 mp3′s. Seems to me that a typical 3 or 4 min mp3 should sell for about a quarter. I can’t really understand how that would not result in overall four times (or more) the music sales.
My thinking is that if a song’s a buck, you can still say no. If it’s a quarter, your impulse wins. Then it’s like Doritos, before you know it you’ve gorged yourself on them…
Music cd’s should probably sell for about $5 to $7 dollars. How much does a fully packages cd cost to print and deliver? $1? Less? Again, I can’t see how people wouldn’t well more music if it were less expensive. And pirate less.
You are not taking into consideration the COST of producing a CD. Engineers, studio time, musicians, etc. A barcode to legally sell a CD in the United States is in the area of $15,000 per CD. A full four-color CD cover can cost upwards towards $25,000. So $5 to $7, you cannot be serious.
We could probably say the same thing about an attorney or a dentist. How much could it really cost to pull a tooth? How much does it really cost for my attorney to give me a “boiler plate form” which he only signs, How much is a signature worth for someone who has never been a celebrity?
It is called the “cost of sales.”