Clay Aiken - A Thousand Different Ways (part III)
Mar 1, 2007 15:14:31 GMT -5
Post by giovannina on Mar 1, 2007 15:14:31 GMT -5
I was just browsing the RIAA.com website -- they haven't yet done their overdue semiannual database update, BTW -- and came across this write up in the Press Room: Key Stats/Facts on Cost of A CD
The whole write-up is interesting and informative. Here's the part that is especially relevant to the ongoing discussions/debates in the previous two Clay/ATDW threads (and others) about what constitutes strong label support for an album:
I also found this part very interesting:
Another factor commonly overlooked in assessing CD prices is to assume that all CDs are equally profitable. In fact, the vast majority are never profitable. After production, recording, promotion and distribution costs, most never sell enough to recover these costs, let alone make a profit. In the end, less than 10% are profitable, and in effect, it's these recordings that finance all the rest.
My guess is that, while some are quick to label a CD that "only went Gold" as a "flop,"
those CDs that do are not only in that 10% that are profitable for the label but are probably in an even higher percentile.
(I think I've read what % sell 500k, but I forgot the exact stats. Oh, and the record label does make their profit from wholesale shipments, not retail.)
Anyway, I think it's pretty clear that, for whatever reason, RCA did not spend a lot on the promotion of this album beyond the CD artwork and a perfunctory "video." It's also clear that the album, despite being handicap tagged a "covers album and not having much label support, has been a moderate success (though its success pales in contrast to the success of Clay's other CDs).
If Clay is going to tour this summer, I seriously doubt that the songs from ATDW will be the focus of those concerts. Let's hope those concerts will be precursors of and promo for his next, all-originals album! (But if he does some of the ATDW songs too, like Everything I Do, Lover All Alone, Broken Wings, and Sorry Seems To Be The Hardest Word, there just might be a resurgence of sales of that album too, provided the stock is out there for purchase.)
The whole write-up is interesting and informative. Here's the part that is especially relevant to the ongoing discussions/debates in the previous two Clay/ATDW threads (and others) about what constitutes strong label support for an album:
...A typical music fan who buys a CD might use that CD at home, take that CD in the car, make a tape of that CD, – or using it as part of a compilation, play that CD with friends and for friends, and keep that CD for many years. That’s probably why most consumers, when asked, describe CDs as a good value. At the same time, when asked directly whether CDs cost too much, some consumers will say yes! Why the contradiction? Because some consumers don't understand why the sales tag on a CD is so much higher than the cost of producing the actual physical disc, a cost, which in fact, has decreased over the years.
While the RIAA does not collect information on the specific costs that make up the price of a CD, there are many factors that go into the overall cost of a CD -- and the plastic it's pressed on, is among the least significant. CD manufacturing costs may be lower, but it takes more money than ever before to put out a new recording.
...
...
...
Then come marketing and promotion costs -- perhaps the most expensive part of the music business today. They include increasingly expensive video clips, public relations, tour support, marketing campaigns, and promotion to get the songs played on the radio. For example, when you hear a song played on the radio -- that didn’t just happen! Labels make investments in artists by paying for both the production and the promotion of the album, and promotion is very expensive.
New technology such as the Internet offers new ways for artists to reach music fans, but it still requires that some entity ... market and promote that artist so that fans are aware of new releases.
For every album released in a given year, a marketing strategy was developed to make that album stand out among the other releases that hit the market that year. Art must be designed for the CD box, and promotional materials (posters, store displays and music videos) developed and produced. For many artists, a costly concert tour is essential to promote their recordings.
...
Copyright ©2003 Recording Industry Association of America.
All Rights Reserved. Contact Webmaster. Site Map.
While the RIAA does not collect information on the specific costs that make up the price of a CD, there are many factors that go into the overall cost of a CD -- and the plastic it's pressed on, is among the least significant. CD manufacturing costs may be lower, but it takes more money than ever before to put out a new recording.
...
...
...
Then come marketing and promotion costs -- perhaps the most expensive part of the music business today. They include increasingly expensive video clips, public relations, tour support, marketing campaigns, and promotion to get the songs played on the radio. For example, when you hear a song played on the radio -- that didn’t just happen! Labels make investments in artists by paying for both the production and the promotion of the album, and promotion is very expensive.
New technology such as the Internet offers new ways for artists to reach music fans, but it still requires that some entity ... market and promote that artist so that fans are aware of new releases.
For every album released in a given year, a marketing strategy was developed to make that album stand out among the other releases that hit the market that year. Art must be designed for the CD box, and promotional materials (posters, store displays and music videos) developed and produced. For many artists, a costly concert tour is essential to promote their recordings.
...
Copyright ©2003 Recording Industry Association of America.
All Rights Reserved. Contact Webmaster. Site Map.
I also found this part very interesting:
Another factor commonly overlooked in assessing CD prices is to assume that all CDs are equally profitable. In fact, the vast majority are never profitable. After production, recording, promotion and distribution costs, most never sell enough to recover these costs, let alone make a profit. In the end, less than 10% are profitable, and in effect, it's these recordings that finance all the rest.
My guess is that, while some are quick to label a CD that "only went Gold" as a "flop,"
those CDs that do are not only in that 10% that are profitable for the label but are probably in an even higher percentile.
(I think I've read what % sell 500k, but I forgot the exact stats. Oh, and the record label does make their profit from wholesale shipments, not retail.)
Anyway, I think it's pretty clear that, for whatever reason, RCA did not spend a lot on the promotion of this album beyond the CD artwork and a perfunctory "video." It's also clear that the album, despite being handicap tagged a "covers album and not having much label support, has been a moderate success (though its success pales in contrast to the success of Clay's other CDs).
If Clay is going to tour this summer, I seriously doubt that the songs from ATDW will be the focus of those concerts. Let's hope those concerts will be precursors of and promo for his next, all-originals album! (But if he does some of the ATDW songs too, like Everything I Do, Lover All Alone, Broken Wings, and Sorry Seems To Be The Hardest Word, there just might be a resurgence of sales of that album too, provided the stock is out there for purchase.)