Quote:
Originally posted by Derwood
Truth be told, when Best Buy sells CD's at $9.99, they are selling them at a loss, as they have to pay $12 each to get them from the distributor. They sell them at a loss to get you into the store to hopefully also buy other stuff
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I think the point is not to just sell the CDs cheaper, but for the labels and distributors to reduce their cut of the profits, letting the CDs get to the store at a cost of $7 or $8. Then everyone could buy whatever they want for $10, the increase in volume would keep industry profits in a similar amount (they would probably lose some, but they deserve it), and a lot fewer people would hate them anymore.