Sunday, May 07, 2006

cd costs breakdown

I've always been curious about this myself so when I saw it posted I wanted to pass this info on.


From :

According to Moses Avalon's 1998 Book, Confessions of a Record
Producer, the proceeds of a then-$17 CD would typically be distributed
as follows:

Retailer: $5 (29.4%),
Record label: $4.92 (28.9%),
Distributor: $2.40 (14.1%),
Giveaways: $1.80 (10.6%),
Duplication/recording: $1.10 (5.8%),
Artist royalty: 83 cents (4.9%),
Songwriter license: 60 cents (3.5%),

Producer royalty: 27 cents (1.6%),
Musicians union: 8 cents (0.4%).

These figures show two things: How little is spent on production and the artist, and how much
goes to the retailer and the record label, since the book was released,
the cost of physical CD production has plummeted due to advances in CD
mastering technology, as well as decreases in prices of the materials
used in CDs themselves. Indeed, a common CD package may cost somewhere
between six and 50 cents to produce, depending mostly on the amount
and quality of liner-material.

P.S. Just had someone email me this link, worth the read


  1. I wonder what the breakdown of an iTune trap would be? I know environmental campaigners advocate them because there is no "product" that needs to be recycled, but without a "product" where does the profit go?

  2. I dont know but Apple just renegotiated with all of the record labels last month to keep the price at 99c for another 3 years so....we'll see in three years time who can rock the boat more.


  3. I read that artists get 4 to 5% of a sale from iTunes, with big artists such as Madonna able to negotiate a higher percentage.

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    blog when you could be giving us sometuing informative to read?