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From: knf@druxo.UUCP (FricklasK)
Newsgroups: net.audio,net.micro
Subject: Re: CD-ROMs
Message-ID: <997@druxo.UUCP>
Date: Thu, 26-Sep-85 18:31:18 EDT
Article-I.D.: druxo.997
Posted: Thu Sep 26 18:31:18 1985
Date-Received: Sat, 28-Sep-85 08:27:34 EDT
References: <512@moncol.UUCP>
Organization: AT&T Information Systems Laboratories, Denver
Lines: 27
Xref: watmath net.audio:5929 net.micro:12124

>>Matsushita, for one, which currently produces 200,000 audio
>>CDs a month, plans to eventually shift to CD-ROMs next January at a
>>new plant in Menomonie, Wisconsin, Anderson says."
>>It appears that manufactures are using a pricing factor of 14, is this
>>a standard value in the audio business?

>I just bought Lotus 1-2-3 for $300.  Let's see.  There are 3 disks in
>the package- at wholesale prices, that's about $3.  It appears Lotus
>Development is using a pricing factor of 100, is this a standard value
>is the software business?

>Ben Broder

This isn't really comparable.  What we're talking about here is a difference
in media, not program content.  For Lotus, you're paying for the program, not

I would expect the price to remain the same.  However, a record that lists for
$7.98 may have a CD price tag of $15.98 or even $17.98, although you're getting
the exact same program content, and the record company is paying the exact same
royalties!  Since the disk might cost a dollar to produce, and the record only
a few cents, they pass this difference on to the consumer.  Where this is 
strange, of course, is that since a record costs, say, 35 cents to produce
while the CD costs $1.00, why does this 65 cent difference turn into $8-10
at the record store.
   '`'`'
    Ken
   '`'`


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