CD's: Who's Ripping Off Whom?

September 17, 2003

Living here in one of the music centers of the world, it's hard not to get caught up in the brouhaha over downloading music.   To me, it's pretty simple.   People have felt for many years like they were getting ripped off paying nearly $20 for something they know, from making their own CDs, cost a fraction of that to produce.   Now that the ripping off is on the other shoe, the record companies and stores are in a panic.

 

That's certainly not to say that I condone illegally downloading music from the Internet.   However, the consuming public has taken the path of least resistance.   Now companies like Tower Records are going, with hat in hand, to the downloading companies wanting to be bailed out.   It's an interesting predicament, to say the least.

 

None of this had to happen.

 

Had record companies not been so greedy and record stores not been so indifferent to the desires of their customers, everybody would be happy.   Now, I know that there are a lot of costs that go into making a CD.   I've put one out myself.   There's the cost of studio time and musicians, design costs, packaging and promotion.   But music industry insiders also point to accountants running the creative end of record companies as part of the problem.   Bean counters who look strictly at the bottom line bypass great acts that might take a couple of releases to catch on.   Instead they follow the latest trend, playing it safe . . . and boring.   Innovators like Johnny Cash, Merle Haggard, even Elvis would find it nearly impossible to get a record deal today.  

 

Something else the record companies have overlooked is the sophistication of the buying public.   When the transition took place between vinyl and CDs, consumers noticed that the CDs cost more.   Simple logic told them that they were much less expensive to produce.   Now the truth is coming out.

 

Universal Music Group, the world's largest music company, recently announced plans to slash its retail price on CDs.    Some CDs costing $19 will cost about $10.   That's more like it.   Obviously, there's still enough profit margin at $10.   Still, Warner Music Group, Sony, BMG and EMI are hesitant to follow suit.   If they don't, they're sure to feel the sting down the road.

 

You see, value is going to lure consumers back to the record stores.   That includes actually getting something special when you open the CD package.   Consumers expect a nice booklet with song lyrics, artist bios, pictures and more.   Otherwise, why not just download the songs from the Internet?

 

Record stores could ride the new trend, too, if they had a mind.   I'd be really excited if I could go into Tower Records and choose any 20 songs to be burned on a CD for $10.   If I can do this at home, surely the record store can offer this service.   The CD itself could be nicely embossed with the record company or record store's logo.   They could even print a nice little insert with a list of the songs, maybe a bit of trivia about them.

 

Instead, consumers are greeted by purple-haired punks with fishing lures hanging from their bodies blaring the latest track from ‘Dumpster Juice' from the store's stereo.   When the customer wants a CD with Percy Sledge on it, the punk rolls his eyes and points to the compilation bin where he'll spend $20 for 12 songs he doesn't want just to get “When a Man Loves a Woman.”