The Price of CDs.
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The Price of CD's Many people believe that CD's are overpriced, but to look at the breakdown in the costs that are involved in producing a CD, the end price at which the CD will be sold to consumers can sometimes be justified. So what are the prices that are involved in producing a CD? Well the record company has to cover all costs not just those involved in the direct manufacturing. These include, the artist advance, the recording costs, the cost of the artists' promotional video's, the marketing of the artist and the CD (including press and PR), tour support and remixes. Although some of these costs are recoupable from the artist, in order for the record company to break-even and make profit, the CD's have to incorporate all of these costs. The record company will then sell the CD to the retailer at the set price that will include...

