A Little Hypocrisy?

The items offered on Audiogon tend to represent the higher end of what's available in music reproduction equipment. As such the record exec is making an argument that the better quality, presumably hi-rez, CDs should cost $15/each. That price seems reasonable to me.

I think it's strange that cassette tapes are less expensive than CDs. They cost the same or more to produce than CDs. When CDs first came out the price was 6-7 dollars more than a tape. Maybe they were more expensive to produce then, but now that production is so cheap why are tapes still less expensive? It seems to me that CDs should have actually dropped in price over the years instead of going up.

Some may buy the $5000 cd player, many more will buy the $100 cd player. We all must buy the $17 cd.

I shop for audio gear on Audiogon to save 30-60% on my purchases. I shop for music at BMG, Columbia House, the multiple annual sales at Streetside records where everything is 20% off, new releases when they're 20% off, Amazon when you can find used, etc. etc. In other words, I don't pay 15 to 20 dollars a CD. I'd guess my average price per CD is 10 to 11 dollars. I only complain a bit, and about both, but I'd say that retail price on CDs is just as ficticious for me as retail price on audio equipment.

I can't tell you how enlightening it has been to read all the posts. Tok20000, you in particular appealed to the accountant in me.

In my humble opinion, it's all about the value. When we part with hard earned dollars for a coveted piece of equipment, it's because we perceive a very high cost to value ratio.

When we look at cd's, I, for one, compare them to concert footage on dvd that, in many cases, is less expensive. I compare them to much higher resolution media like DVD-A and SACD that may be a dollar or two more expensive. I compare them to the cost of a movie on dvd, and find them wanting.

Twenty years ago, when cd's were perceived as THE high rez alternative (at least by some), the fifteen dollar price tag may not have seemed so onerous. Now, with all the alternatives offering so much more entertainment bang for the buck, they do seem a ripoff.

Again, IMHO, the cost of the plastic is irrelevant. It's what's on the plastic that matter. Put another way, 2 pieces of plastic, one contains a 15 year old episode of Barney, the other has your favorite latest run hit movie in THX. They both cost the same 80 cents or whatever to make. Which has more value?

If I do know one thing about economic imbalances, it's that there is always a correction and a day of reckoning. It's my theory that the BIG one in the music industry is at hand. Take heart.