Quote:
Originally posted by Lord Nikon
One question for those in here....
I apologise if it seems to be a long winded one, but it needs asking
A customer downloads a song by an artist... say Metallica - Enter Sandman to see if it is the song he wants...
He burns it to CD, at a media cost of 16-20p, he is happy
He is also infringing the law...
A Record company puts out a new CD Single.
Unit production cost for the single is less than a penny per, yet they sell it for £4.00
that's a 4,000% markup...
when you look at things in the way of markups everyone needs to make a profit..... but 4,000%?
the biggest case of robbery is done by the BPI, yet they do it within the law
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Key phrase there would be "within the law"
Besides, manufacturing costs are not the only fugures to look at for CD's.
You need to look at how much these manufacturing comanies invest in research and developement. Think about it.... If a company manufactures CD's to todays standards, but does not think of investing in research & developement, what will they be manufatruing when the format gets better, or more data can go onto a CD?
When CD's first came out, they held no more than 72mins of music or 650M of data.
Now, with that in mind, start to consider this.... Dont you think
maybee they pay staff, rent, rates, utulity bills etc.?
Someone having a good mark-up on the legitimate sale of a product is whole heartedly different to someone stealing.
It costs no more than 7p to manfacture 20 Benson & Hedges, add on profits and tax and it's nearly £5. Does that mean it is acceptable for me to go and rob my local newsagent?