Value-Added Chain The Big Six, now the Big Five, have strategically accommodated for these changes, widening and buying more distribution channels and buying more and more labels. Their response to the internet revolution remains the next major decision facing these companies. As we have seen, EMI and Time Warner have responded by merging in 2000. The major players have realized that this vertical and horizontal integration brings them more of the profits in the supply chain. We can see this profitability directly in the following simplified value added chain. We can see that the artist makes only a fragment of the cost of a CD.
The labels only start paying the artists their royalty of, say, $2.00 per copy in what is known as "the post-recoupment phase". For example, if a company spends $300,000 in total production and marketing costs and $200,000 of those dollars are recoupable production and marketing costs, the artist will then need sales of 100,000 units for their royalties to add up and make up for the remaining cost. By that point, the label has made over $300,000 in actual profits after paying publisher royalties and manufacturing costs while the artist is just beginning to make a profit. And this is just for a low selling album! The record companies are making the profits, and by owning more parts of the supply chain, they can make even more profits by narrowing the costs of production.
This chart represents the value added chain beginning with the distributor and ignoring the actual price of the CD sold by the retail location to the customer. This price can vary and we must also consider that distributors can directly reach their customers through record clubs or the internet. Distributors are often located in the same place as manufacturers, thus decreasing costs even more between these two places in the supply chain.
Because the labels are making the profits, they want to sign on as many artists as possible to increase their chances of finding a billboard hit, while still making a substantial profit from small successes. Also, they want to reach out to more and more customers. They can do this because they are able to provide people with a more diverse variety of music and because, with such money and power, they are able to quickly establish distribution networks in new markets, especially in the international market.
Computer DJing Industry Survey The purpose of the survey is to collect product-anonymous information about computer DJs, which we will aggregate and publicly share with the hardware manufacturing and software development community community. The survey features multi questions, and upon completion you will be entered in a drawing to win some great prizes and software. All responses will remain completely anonymous and no personal information will be shared, harvested or sold.
The more completed surveys we get, the better our data will be, meaning our findings will be of greater interest to the hardware manufacturing and software development community. Be sure to take the survey! All of your information will remain anonymous, and once we receive enough responses, we'll announce when we'll publish the data.
Click here to take survey.
Educational Review Material
DJ Summit Review DVDs
Did you miss last years Computer DJ Summit? After two years of coveing many 101 topics, future Summits will now focus on advanced learning. If you missed the wealth of information shared during the Summit you will find several review DVDs now available in the official CPS Store. These DVDs will catch you up for future events. DVDs ar available in two disc sets and mega sets. Click here for details.
General Program Details
CPS Certification Gives an Edge
In a white paper titled Certification: Networking With the Best, George R. Conrade, wrote, "Certification is an excellent way to gain a competitive edge and give proof of your abilities, knowledge, and level of skill. To be certified in any profession, whether it's as a Certified Public Accountant (CPA) or as a CPS Certified Disc Jockey (CPSDJ), means you have joined a network of individuals who meet consistent, knowledge-based standards of ability, position, experience-even ethics. When you pursue certification, you're testing yourself against these standards of proficiency." Click here for details.
Computer DJ/VJ/KJ Summit/Cruise
Special announcement... The Digital DJ Summit/Cruise will began in Tampa, Florida. This years event will be groundbreaking for the novice and experienced Disc Jockey. Anyone “already” or “planning” to mix mp3s or other music file format with hardware, software or combination of both. Block your schedule and don't forget to attend the Monday evening " Weddings Ground-0" seminar to discover the plans for the 2019 Summit.
NOTICE: The 2019 Summit is a B.Y.O.L where you can plug-into the live experience.
LAST UPDATED:
August 20, 2007
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