Don’t get me started on this…(OK, so you didn’t really specifically address your post to ME, but, hey, I read it and now you gotta deal with it)
The actual product – glass-mastered CD, inserts, 4-color printing, jewel case, etc – costs between $1 and $2. Your average local bar band can have their CD mass-produced by someone like Discmakers at a cost of about $1500 for 1000 CDs. Obviously, the cost-per-unit is significantly less when you manufacture 2000, 3000, 5000, 8000 CDs and upwards.
Sure, throw in a few cents per CD if the label paid for studio time, a little more for other amenities, but the end result is the same - there’s a vast difference between cost and retail…
I produce short-run CDs for small bands, using an “audio-only” CD burner, a laptop computer running Photoshop and an Epson printer stocked with aftermarket ink cartridges. I do everything by myself and by hand, and I still only charge $3 per CD. It only leaves me a profit of $1 per CD (averages out to be even less than Kathy Lee pays her child laborers per hour), but the bands can sell these CDs for $10 or less and make 200% profit. And when they have the resources, I always recommend companies such as Discmakers, where the cost-per-unit is less and the profit margin higher, while still keeping music affordable.
Yes, there are many benefits to being on a major label, but when you really break down the numbers, idiocies such as the record industry’s attack on Napster-esque file sharing becomes incredibly laughable. Hell, there’s a reason why Metallica have become embarrasing while I have come to love Weezer and Wilco, and it’s not just because of “Re-Load.”
Sorry this is pretty much off topic, but I warned you!