The record industry is greedy. Its a well known fact. They have always been greedy but its just getting worse. If they didnt charge so much for a fucking CD with 1-3 good songs on it. I bet Piracy would go down. They have been busted for price fixing and had to pay a shit load of money and i guess the consumers are paying for it. And now they want to charge a Tax to stations to play THEIR music.
Ok let's break down the cost of a CD and then you tell me if it's expensive or not. This is based on my experience working in the music industry in the UK.
CD manufacture and sleeve printing: 1GBP, often more when coupled with more complex covers, free DVDs and other things like extra inserts. Some discs can cost uc to 3 or 4GBP to manufacture.
Then you've got to cover the cost of the recording. Albums can cost thousands to record in good studios, which can cost upwards of 10,000GBP PER DAY.
Then you've got the cost of advertising and promotion.
Then you've got the cost of administration.
Then you've got to give the artist something. This works out at normally around 1GBP per sale.
So, this so far works out at roughly 6GBP.
Then, the album has to be distributed. The distributor obviously has to make money too, so they then sell the CD on to a record store for around 7 - 9GBP depending on the amount they've paid for it and the demand.
So, before HMV or whoever have received their disc, it's already cost 7 - 9GBP.
Now MR HMV needs to make at least 25% on top of this to make it worthwhile opening their doors. Otherwise they'd be bankrupt.
Which brings the total to somewhere around 12GBP.
The margins in CD sales are shit. They always have been. Record companies do not make vast riches on CD sales. They make them from merchandising, posters, spin offs, greatest hits albums, DVD live concerts etc etc. The only CDs they really make money on are the pop artists like Britney. Decent music nearly looses record companies money. Talk to an independent label and ask them how greedy they're being.
I'll never understand why anyone complains about having to pay 12 - 15GBP for a record. Does anyone realise how much profit car manufacturers make? We're talking OVER 100% here. And people complain about record companies making 5 - 10% on an item that costs a tiny fraction. Incredible.
So you can see, the cheapest a CD can realistically be sold for is 10GBP. Supermarkets are the only places that can sell them cheaper because they use them either as loss-leaders, or they're happy to make a penny on each sale.
CDs are not expensive. They are simply the best value item money can buy. A lifetime of entertainment. If you're complaining about it, you're just buying the wrong CDs.