Wednesday, March 12, 2008

infl8ion


2 weeks ago, i was sitting in some panels at the Folk Alliance in Memphis, listening to panelists try to help me, an artist, pretend to be more like a business person. i don't think i'm inherently lazy, but i really am into pain avoidance (like most people, i think) and thinking about business hurts me. why should i do it? i want to spend that time thinking about my piano.

anyway....i heard this interesting little tidbit that stuck with me. one of the panelists was talking about the costs of cds today. he compared it to buying a $5.98 vinyl album in the 1970s. he said, the cost of that same record today would be $33. i was a bit shocked!

curious, i looked up an online (probably not the most accurate, but still) inflation calculator and saw that some of what he said might really be true. According to 2 of the calculators, in 2007 dolllars, $5.98 is actually closer to $25 and the $.99 people pay for mp3 downloads would be around $4, now.

so, typical of artists, it seems that we've been undervaluing our product even more than i thought we were. but what's the fix? most people i know will not look kindly on shelling out $25 for a cd, unless they are completely devoted to that music.

i'm no economist, and i know that there are many factors at work (the ability of people, like me, to self-produce albums, which means the market has alot more to choose from) in these equations...but still........i think the reason it's so on my mind is that i struggled with pricing for the new disc. i'd never sold a cd for more than $10, but this one was a long term, hi quality product. why shouldn't i charge what i now realize is actually a 40% discount right at the beginning?

1 comment:

Jim Baker said...

75% of consumers think music is still too expensive! At least according to the survey discussed in this Feb 2006 article at http://arstechnica.com/news.ars/post/20060202-6103.html .

Assuming the cost of a CD is driven by the big labels in the industry, for them to make money the cost of getting records into the consumers hands today must have dropped significantly since 1970 to allow the price of the CD to lag inflation by so much. The consumer must think that as well to not want to pay the inflation adjusted price for a CD.

Just as in 1970, the independent musician has to compete with the musicians that sign with big labels. Today, since it is easier to get music into a digital file and onto a CD or mp3 download, the competition to get people to hear and buy an independent musicians music may be even greater than in 1970 since they are also competing with each other. With the popularity of shows like American Idol it makes it even worse because everyone thinks they can be a star. There is such a deluge of people pushing their music that it's really hard to listen to it all and find the really good ones.

I think a lot of luck, or divine intervention, is necessary. Hooking up with a musical philanthropist or forming/joining an indie music alliance or something like that maybe a way to get your name out above the "weeds", but then are you giving up some indepenence by doing that?

I'm not in the music industry so these are just my musings as a music consumer.