How much would you pay for a CD at a concert?
A friend of mine is a singer/songwriter who gives concerts that attract mostly between 100 and 300 people. He has a new CD that he has made himself and can sell at any price that he wishes. So the question becomes what would be perceived as a fair price for this product and induce people to buy it? The record companies seem to think “whatever we charged in 1980, adjusted for inflation, is good” but their declining sales seem to indicate otherwise. The younger folks whom I’ve talked to mostly report that (a) they have no money because it is all going to mobile phone and cable TV/Internet, (b) they have no space to store CDs because they are paying $750/month for one room in a cramped Somerville apartment, and (c) they don’t think of CDs as representing a good value compared to alternatives (I just signed up to Rhapsody as part of my Sonos whole-house music system experience and for $10 per month it is pretty impressive how much stuff one has access to). The old folks report that (1) they already have XM or Sirius satellite radio in their fancy new cars, and (2) they already have CDs of the music that they like best (will there ever be another band as great as ABBA?).
The question I asked was “You go to a concert with about 150 other people and enjoy the music. The moderately successful artist is selling CDs after the show. You don’t think that any of your friends already have the disk and therefore you won’t be able to borrow and rip it easily. How much would the CD have to cost before you would definitely buy it?”
Answers so far: 27-year-old female: $5; 40-year-old male medical doctor: $5; another 27-year-old female: $5; 29-year-old female: $5; 41-year-old multimillionaire male $4-8; 30-year-old male: $9; 36-year-old multi-millionaire male: $9; 32-year-old male $10; 35-year-old female medical doctor: $10; 39-year-old male: $10; 42-year-old male $10 [if no data on wealth provided, assume comfortable middle class or above]
What do the readers say? Please comment and include your age and sex. If your income level is unusual please indicate with “student”, “multi-millionaire”, “medical doctor” or similar. If your occupation is somehow related to the entertainment business, please indicate.
Thanks!
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