[wpghipfan]

Hey folks...

Since World Container has become available for pre-order on iTunes, a question has been lingering in my head, that perhaps mav would be able to answer. I read somewhere that musical artists get less that $1 from each CD sold. This is due to marketing, packaging and manufacturing costs, etc etc. Would the band get more of a cut from an iTunes album download, as opposed to a physical CD sale? I'll end up getting a couple copies anyways, but I would like to know which media is more profitable for the boys.

Cheers!
Rory

[sundin13]

Hey folks...

Since World Container has become available for pre-order on iTunes, a question has been lingering in my head, that perhaps mav would be able to answer. I read somewhere that musical artists get less that $1 from each CD sold. This is due to marketing, packaging and manufacturing costs, etc etc. Would the band get more of a cut from an iTunes album download, as opposed to a physical CD sale? I'll end up getting a couple copies anyways, but I would like to know which media is more profitable for the boys.

Cheers!
Rory

Hi Rory:

Not sure about iTunes, but this is the breakdown for your standard $15.99 album (done by an independent market-research firm last year):

$0.17 Musician's unions
$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

It's always interesting to see how the piece of the CD pie is divided up...

[MAverick]

Hey folks...

Since World Container has become available for pre-order on iTunes, a question has been lingering in my head, that perhaps mav would be able to answer. I read somewhere that musical artists get less that $1 from each CD sold. This is due to marketing, packaging and manufacturing costs, etc etc. Would the band get more of a cut from an iTunes album download, as opposed to a physical CD sale? I'll end up getting a couple copies anyways, but I would like to know which media is more profitable for the boys.

Cheers!
Rory

Rory, this is way above my pay grade.

[wpghipfan]

Hahahah... thanks anyways, MAv. it has been said before in another thread, but Mav should get a raise.....

Rory
Halifax

[Tthip]

Here are two articles/worksheets on the subject.
I do not really understand:

<!-- m --><a class="postlink" href="http://msl1.mit.edu/furdlog/docs/baffling_itunes_royalty_calculation.pdf#search=%22artist%20royalties%20itunes%22">http://msl1.mit.edu/furdlog/docs/baffli ... 0itunes%22</a><!-- m -->

<!-- m --><a class="postlink" href="http://www.futureofmusic.org/itunes2.cfm">http://www.futureofmusic.org/itunes2.cfm</a><!-- m -->

[VioletlightHeron]

Hey folks...

Since World Container has become available for pre-order on iTunes, a question has been lingering in my head, that perhaps mav would be able to answer. I read somewhere that musical artists get less that $1 from each CD sold. This is due to marketing, packaging and manufacturing costs, etc etc. Would the band get more of a cut from an iTunes album download, as opposed to a physical CD sale? I'll end up getting a couple copies anyways, but I would like to know which media is more profitable for the boys.

Cheers!
Rory

Hi Rory:

Not sure about iTunes, but this is the breakdown for your standard $15.99 album (done by an independent market-research firm last year):

$0.17 Musician's unions
$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

It's always interesting to see how the piece of the CD pie is divided up...

You know, it would be great if the shareholders of the publicly traded music companies (EMI, Virgin, etc) demanded transparency and detailed accounting on the cost of "label overhead" and "retail overhead" cratch: :x hock:

[schaggs]

Label Overhead is roughly the amount of money the label has to spend to get that single album in print.

Retail Overhead is the cost to keep your music store open, staffed, and stocked so that you have an opportunity to purchase the album.

[VioletlightHeron]

I keep thinking Label Overhead is the amount of money the labels spend on the bands for touring costs because you have the 90 cents for distribution(which would imply the money is spent on shipping the album to the store, agreements with retail outlets to carry albums, etc) and the 2.40 being spent for radio airplay and promotional materials, advertising.