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Hip CD royalties
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wpghipfan Wrote: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...
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