Comments on: Music sharing doesn't kill CD sales, study says

Researchers at Harvard and the University of North Carolina say music swapping isn't to blame for falling music revenue, and might even help sell CDs.

[cmcmanis]

Its Economics, not Piracy

What the RIAA consistently fails to consider are the economics of their primary market, teens. Whereas in the late 60's and 70's the cost of an LP Album was consistent with what the typical teen might earn mowing a lawn or babysitting, today's CD prices require 3 to four lawn mowings, or 4 or 5 nights babysitting. In terms of real economic cost music is pricing itself out of the core demographic.

The combined effects of fewer CD sales, and the concommitant lack of "word of mouth" exposure, means that teens are reluctant to buy an album that has just one good song on it, unwilling to trust that the rest of the CD makes up the value ratio. Not surprisingly the sales of "Greatest Hits" CDs and other collections are doing better by comparison in part because of the reduced risk of getting a "lousy" CD.

--Chuck

You are correct, and...

If new technological advances result in lowering the cost of the product (e.g.- CD's cost drastically less to produce than cassettes, don't they?) then why do we pay more for CD's than the same album on cassette? If they want to stimulate sales they should not just lower a CD a couple of dollars, lower it to equal with cassettes. Especially in a bad economy like we have now, give us a break! And if a newer technology came out, would it automatically be jumped up to $30 or something? What is the -inherent- value of the album itself?