ST Alpha - "i would think they take a percentage per unit sold, whether digital or CD -- nm" (Reading a Post)

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In response to "I wonder how much amazon has to pay for each album it sells. I understand stores selling albums for cheap so they can lure people in but I don't think" by James Bond (aka Igor)

i would think they take a percentage per unit sold, whether digital or CD -- nm

Posted by chrisco (aka chris) Nov 21 '10, 21:27

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Responses:

A percentage? You mean the retailer can set any price and then just give the label a percentage? That doesn't seem right. What would stop them from - James Bond (aka Igor) Nov 21, 21:33 11
- no, the artist sets the price, amazon distributes for a cut off the top of each sale (subject to having the power to put it on sale for certain - chrisco Nov 21, 21:36 10
  - So you are saying the artist allows Amazon to sell it for $3.99? Won't the other chains complain? I think Amazon is taking a hit on the sales. - James Bond (aka Igor) Nov 21, 21:43 9
    - I know that artists are aware of it prior to the album being the "deal of the day." - JaxSean Nov 22, 05:56
    - well, for one, i am pretty sure that itunes was furious when amazon started pricing the way they did. -- nm - TFox Nov 21, 21:46 5
      - Is iTunes not allowed to price that low or are they just being Apply and overcharging. -- nm - James Bond (aka Igor) Nov 21, 21:50 3
        
        I think both. I think that in being trailblazers with the legal mp3 sale thing, they signed deals that in today's view are very pro-label. - TFox Nov 21, 21:56 1
        
        Interesting. -- nm - James Bond (aka Igor) Nov 21, 21:58
        
        Apple and the record labels have pricing agreements in place. Amazon, to my knowledge, does not -- nm - chrisco Nov 21, 21:55
      - they were all like "bitch! what?!" -- nm - chrisco Nov 21, 21:47
    - if you're an artist and Amazon is the biggest online music retailer besides iTunes, why wouldn't you? the volume of units you can move on amazon - chrisco Nov 21, 21:45 1
      - Ok, I see your point. -- nm - James Bond (aka Igor) Nov 21, 21:49

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