When CDs are priced down in HMV sales, whose cut of the proceeds is reduced / zeroed?

Message Bookmarked
Bookmark Removed
1) Artist
2) Songwriters
3) Record Company
4) Shop
5) Other

Or a combination?

mark grout (mark grout), Friday, 23 January 2004 14:43 (twenty-two years ago)

i think it might be 3. or a combination of the record company and the store. not that sure though.

I think the sale stock is bought in bulk by the store at a cheaper price, but i think the artists get the same amount of money whether it's sold in a sale or at full price.

jellybean (jellybean), Friday, 23 January 2004 14:49 (twenty-two years ago)

I think it's 3. They do the special deals don't they. I buy most of my purchases in these sales, they have been good to me. If it was the artists i'd feel slightly guilty.

pete s, Friday, 23 January 2004 14:54 (twenty-two years ago)

95 times out of 100 it's because the record company has lowered cost prices of the disc, so 3

mark p (Mark P), Friday, 23 January 2004 15:12 (twenty-two years ago)

And the other 5 is cause a nice expanded version with optional DVD is on its way.

mark grout (mark grout), Friday, 23 January 2004 15:16 (twenty-two years ago)

combo of 3/4

3/ some stock is bought in especially in bulk from Record companies: marked as special purchase / e.g 3 for 2 deals, 5 cds for 50 quid etc. They negotiate deals with distrubutors for taking X,000 titles and get a better per unit deal.

Also some stock is bought in bulk from wholesalers/ importers for sales, e.g the bargain bucket types that are overstocks/ imports etc. remember the cut-outs in the cassette era.

Then there is third category where the shop sells off old stock that has not sold, these would be priced down via direction ffrom head office/ regional managers.


Remember that 1/2 [Artists/ Songwriters] are normally paid via a chain of transactions, e.g the Shop pays the Distrubutor, which filters down to the label & publisher. so the reduction in sale price is not relevant.

DJ Martian (djmartian), Friday, 23 January 2004 15:31 (twenty-two years ago)

Artists and songwriters get a cut of record sales? Bwah hah hah! What a quaint and charming notion! < /bitterness >

the river fleet, Friday, 23 January 2004 15:33 (twenty-two years ago)

It can also be one because there are often clauses for artists not receiving payment for "promotional copies," i.e. 8 dollar CDs at Best Buy.

Xii (Xii), Friday, 23 January 2004 18:47 (twenty-two years ago)

Most manufacturers have a Gross Margin and Markdown budget geared towards promotion (and returns/allowances). They aren't taking a hit necessarily as budgeting as part of their sales and margin plans.

gygax! (gygax!), Friday, 23 January 2004 20:30 (twenty-two years ago)

In publishing, aurthors get a reduced fee when their books are in the prominent "3 for 2" sections of Waterstones etc in exchange for their book to be in a prominent postion in the shop

smudger (smudger), Saturday, 24 January 2004 00:06 (twenty-two years ago)


You must be logged in to post. Please either login here, or if you are not registered, you may register here.