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Author Topic: What Will It Take For CD To Make Profit  (Read 1839 times)
mpkline
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Here Today...


« on: February 28, 2007, 12:14:02 PM »

2 Million Sold X $13.00 Per Disc = 26 Million Income
Minus 13 Million Studio Time
Minus 10 Million, $5.00 Per Disc x 2 Million, Actual Production Cost to make the Discs
Equals 3 Million profit so far
Minus assorted other things that I have No idea about
Equals        ??          how much money will Chinese Democracy Profit after all expenses paid back

Never Mind Paying The band

So Chinese Democracy will have to go at least Double Platinum (2 Million) to break about even
What is your opinion, just something in my head
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Neemo
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« Reply #1 on: February 28, 2007, 12:16:20 PM »

this was discussed a while ago...with the average breakdown of cd sale % to each party involved...check the search function and you can prolly find it peace

EDIT!!!: 

I found it

redfield, Geffen made their money back alread tenfold on the GH album and the videos being released to dvd.? There is no "$13 million bill anymore".?

Wrong, I've stated this before, just because they sell 1 million records at $13 bucks each, doesn't mean they made back $13million profit.

This album WILL BE PROMOTED!!!

Here's the breakdown I was able to find on CD revenue distribution.? It's on a 15.99 CD.

$0.17 Musicians? unions
? ? $0.80 Packaging/manufacturing
? ? $0.82 Publishing royalties
? ? $0.80 Retail profit
? ? $0.90 Distribution
? ? $1.60 Artists? royalties
? ? $1.70 Label profit
? ? $2.40 Marketing/promotion
? ? $2.91 Label overhead
? ? $3.89 Retail overhead

I'm not going to extrapolate down to 12.99 because, honestly, GH CD's are bigger money makers for a label, anyway, because much of the production and overhead is already paid for.? So, assuming they make about $1.70 per CD, on 3.5 million units, they've made back about 6 million back, of the reported 13 million they gave as an advance.? I'd actually venture that number is a bit higher, since marketing and promotion and label overhead were actually probably about 1/2 of what they would be on a new CD.? I, too, doubt they've made all the 13 million back, but would bet the GH has made them somewhere between 6 and 10 million, though the min/max range is between 5.5 and 15.5 million.

PS: That 3 1/2 million number is US only, so....I guess you could look at it that it's entirely possible that GH covered the entire advance based on world wide sales.? The entire advance and then some.....7 million copies (assuming that number is correct) x 1.70 is 11.9 million so even at the bottom range it's almost covered it.

the whole thread is here http://www.heretodaygonetohell.com/board/index.php?topic=37552.0 Wink
« Last Edit: February 28, 2007, 12:19:47 PM by Neemo » Logged

CheapJon
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« Reply #2 on: February 28, 2007, 01:54:36 PM »

it will sell double platinum..


but bands doesn't make most of their money on selling albums they earn much more touring and gnr did that last year quite a bit and this year will probably look kinda the same so it will make profit and axl will get even richer yes
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GNRreunioneventually
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« Reply #3 on: February 28, 2007, 03:26:05 PM »

hell it'll go more than double platinum if they promote it enough and right and get a single out soon Smiley


and good question i'd never thought about that  ok
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GNRreunioneventually

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