Rhiannon wrote:Gunbot wrote:By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.
That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day...) that's not exactly easy itself.
So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.
Interesting stuff. And that eco-design shit is the dumbest thing I've ever heard.