WHERE THE MONEY GOES

A posting on NZ Songs Mail Group

"The CD price 17 years ago or so started out just about where it is today, just because they could demand it.  If they want to combat copying and commercial pirates and falling sales, lower the price and change the culture of the recording biz to create new artists and more of them.

 Here's where your $US17 goes when you buy a CD:

* Retailer: $5
* Record label: $4.92
* Distributor: $2.40
* Giveaways: $1.80
* Duplication/recording: $1.10
* Artist royalty: 83 cents
* Songwriter license: 60 cents
* Producer royalty: 27 cents
* Musicians union: 8 cents

SOURCE: Confessions of a Record Producer (Backbeat Books) by Moses Avalon

Curious as to the local breakdown I consulted a senior industry person who  did not wish to be name and discovered the Government gets twice as much as the songwriters but the record companies take about one third of a $NZ 30 CD  - Keith.

Estimated breakdown:
GST                          $3.33
Record Store           $8.00
Artist                         $4.75   (quite variable)
Songwriter(s)           $1.50  
Manufacture             $2.75     (presuming fairly classy booklet)
Record company      $9.67 (includes producer royalty if applicable)