Baseball Crank
Covering the Front and Back Pages of the Newspaper
September 24, 2007
POP CULTURE: Napster Killed The Radio Star

Will Collier explains how the record companies' declining profit margins from selling music in the age of iTunes are pushing them to focus on acts who generate profit from things other than their music, with inevitable declining returns on the quality of the music.

Posted by Baseball Crank at 9:22 PM | Pop Culture | Comments (1) | TrackBack (0)
Comments

You know, it's funny. The profit margins are almost exactly the same. This old Rolling Stone article (http:// www.rollingstone.com/news/story/6558540/walmart_wants_10_cds) placed it at roughly 30% retailers, 70% labels/musicians/etc.

If anything, the actual margin is better since there is little real physical costs. They lose out because they cannot force people to buy a whole CD (generally) - in fact, moving to that stupid Ringle or a 1.99 pricing is just pure greed. VodkaPundit has it right, though - one can only hope the regular musicians sell directly through Apple. Or something like it.

Posted by: Dave at September 25, 2007 5:29 AM
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