Friday, November 11, 2005

Music Monopoly

So let's examine the economics of music from a consumers standpoint. How about an Apples to Apples comparison.

The list price on Amazon of the bestselling music soundtrack vs. the DVD:

1) Garden State is $14 for the CD, $20 for the DVD
2) Love Actually is $19, $15 for the DVD
3) Ray is $19 for the CD and $20 for the DVD.
4) Nightmare before Christmas, $12 for CD, $19 for the DVD.
5) O Brother where art though? is $14, and $20 for the DVD.
6) Star Wars Ep. III, is $19 for CD, and $30 for DVD
7) Grease is $14, vs $15.
8) Batman Begins is $14, $30
9) Crash is $17, vs $30.
10) Phantom of the opera is $19, vs $20.

Does anyone else find this weird? A consumer would assume that the price of a product is related to the cost of its production. Using that logic, 50% of Batman's cost comes from the soundtrack. Star Wars spent 66% of its budget on music, and 75% of Garden State's cost comes from the soundtrack. Its actually cheaper to buy the DVD of Love Actually, turn off the screen, and listen to the music within the movie than to buy the CD. No wonder CD sales are down, and DVD sales are up.