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Why are HD downloads so expensive?

So as we enter the "post physical media" era I am amazed and rather disappointed that the new HD downloads from HDtracks, Linn etc. are so damn expensive.
In most cases these are reissues of old music that has seen the original investments amortized many times over. And now no longer needs to be packaged, shipped warehoused etc.
Yet on average the cost is over $20 per album.
I think this is a huge rip off.
What do you think?
mauidj
mauidj OP
127 posts
 
Even more reason no to support these HR download sites then isn't it? Sorry but so far no one commenting on here has convinced me that these aren't giant rip offs.
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drubin
3,275 posts
 
I have been told that it's actually more costly for Netflix to distribute video electronically than to send you the red envelopes. If so, then we could have the same situation here. But cutting out the retail middleman would more than make up for that.

Perhaps it's not the download sites that are setting the prices but the labels, who are trying to manage channel conflict and not kill their retail partners too quickly.
mauidj OP
127 posts
 
Netflix thing.....I don't dispute that but this is not a streaming service so the analogy is not quite fair.
I think you will find that HDtracks are the ones setting these prices not the labels.
My friend in the industry tells me that his company (very famous jazz label) does not set a retail price for HD downloads....just a minimum resale price to protect other distribution channels.
paul_graham
197 posts
 
Mauidj

Willing buyer, willing seller. God Bless America.
mauidj OP
127 posts
 
Paul...I guess that is the fundamental truth and answer to my question.
Problem is that that attitude will never allow them to break into the mainstream or entice new listeners into HRes audio.
Make the price exclusive and you have an exclusive product.
Seems really short sighted to me...but I'm not conversant with their economic needs so maybe this is the only way it can work for them.
Just count me as one of the unwilling.
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