QUOTE(bivester @ Aug 23 2007, 02:05 PM)

you are totally wrong about the pricing too (imho), if you can afford $5 for a cup of coffee, you are far more likely not to resist paying full pop for a cd, rather than look for a bargain. much of life for their customers, which obviously have expendable income but may not have as much expendable time, is about convenience. in fact, i'll bet in most cases they would be willing to pay a buck or two more in order not to make another stop to pick up a cd (or any other item they like).
but i know...the music business sucks...business sucks...everything sucks

If that is true, then why are CD sales tanking? I'm no economist, but it seems to me the market dictates the cost of things, not the companies. And sales seem to show that the physical CD does not have the value it once did in the eyes of the consumer...any other industry would have been finding ways to adjust for this years ago...
Mathematically, yes...anyone who can afford $5 Starbucks drinks every day should be able to afford a $15 CD, but...it's not about the price, it's about the value, and moreso, the idea in the consumer's mind that they are getting a value. While people still have CD players, you're going to sell a certain number of discs at the Borders-ish (over)price, but IMO you'd sell twice as many at a drastically reduced price, and make
more money in the end, since music, and profiting from music
should be more about exposure and numbers of listeners than raw sales. Just ask a jam band.
But, I'll do this for Bill:
Ignore what I just said. The business is great! Everything the labels do is great for the artists, for the fans, and promotes the development of long musical careers over one-album pop stars! The labels
totally see that they can make more money off slowly developing long-term fanbases by credible artists instead of spending millions in payola so that everyone will hear the new Fergie single. And of course, in promoting their new artist and fan-friendly digital distribution systems that eliminate almost all the costs associated with manufacturing and retail distribution, they've made sure to pass those savings along to the customer by removing those costs from the online prices, while simultaneously giving incredibly generous percentages to the artists.
Better?