Why are HD downloads so expensive?


So as we enter the "post physical media" era I am amazed and rather disappointed that the new HD downloads from HDtracks, Linn etc. are so damn expensive.
In most cases these are reissues of old music that has seen the original investments amortized many times over. And now no longer needs to be packaged, shipped warehoused etc.
Yet on average the cost is over $20 per album.
I think this is a huge rip off.
What do you think?
mauidj

Showing 10 responses by mauidj

I agree Wolf....stealing is just wrong...the end.
As for the royalties..... that's the question.
Assuming the royalty is the same regardless of the medium, then how can HDtracks justify a price that is the same as a 180g vinyl album?
Both need to be marketed, accounted etc so lets call sales, marketing and admin etc a wash.
In the case of the LP you have to make the lacquer etc, make and press the album, print and apply a label, print and make a cover, warehouse the unit, ship the unit and give the retailer his mark up.
Or in the case of downloads...put it on a server and count the money!
So how can this be right? And why should I, as has been said a couple of times here, support these overcharging companies?
Even more reason no to support these HR download sites then isn't it? Sorry but so far no one commenting on here has convinced me that these aren't giant rip offs.
Netflix thing.....I don't dispute that but this is not a streaming service so the analogy is not quite fair.
I think you will find that HDtracks are the ones setting these prices not the labels.
My friend in the industry tells me that his company (very famous jazz label) does not set a retail price for HD downloads....just a minimum resale price to protect other distribution channels.
Paul...I guess that is the fundamental truth and answer to my question.
Problem is that that attitude will never allow them to break into the mainstream or entice new listeners into HRes audio.
Make the price exclusive and you have an exclusive product.
Seems really short sighted to me...but I'm not conversant with their economic needs so maybe this is the only way it can work for them.
Just count me as one of the unwilling.
Tomcy6 - I just love the "if you can do better then do it yourself" responses!
What twaddle.
Just where did I even suggest setting up a music distribution service is easy or cheap?
I also don't remember saying I can't afford them. So what's with the go listen to your cd's put down......neither an interesting or stimulating response!
And yeh together with my vinyl collection I've got more than I will ever be able to listen to...but again...hardly the point in this discussion.
Look at my first question mate.
I just asked people why they think HD downloads are the price they are.
You obviously think they're fairly priced. That's a fair response to my question.

Inna...well said.
Tomcy6....fair enough mate.
I took your comments the wrong way.
But rest assured I'm not stressed out by it...rather disappointed and as stated...curious as to the pricing structure.
I guess I still can't understand how a basically non physical format can cost the same as a very complicated physical one.
But as we both said in a round about way I'm not in the business and don't know all the details of the processes involved. Thus my original question.
In a way it still remains unanswered.
Shadorne....obnoxious! What the hell does that mean? And why are you making this so personal? Do you work for HDtracks or something?
If they charged less then it would be a bigger success .... or I am I missing something.
If my obnoxious attitude is enough to cripple these companies then they are the ones doing something wrong.
What's with all these hostile posts here. Can't a person have an opinion without all this flaming?
And as for your accusation that I am a thief.... only an idiot would say a thing like that to a complete stranger.
@Paul_graham.....
Oh my...I laughed myself off the chair :)
Does it show that bad?
You should see my posts on Macrumors!
Bloody funny mate.....
Thanks Neal....I agree.
Levy03.....I don't quite agree with the analogy about the Porsche.
With one of those you can see there are many reasons it costs more than a Ford. If the Ford performed as well as the Porsche would you be happy paying Porsche price knowing the materials, build quality etc are not as good. Of course you wouldn't.
But in the case of HD downloads all you can do is hear a performance difference. That should not cost any more to store, sell and deliver than a track on iTunes. Hell, they don't give you liner notes or cover art on much of the HD downloads! (eg...the stuff you get with a Porsche)

Pricey is a fair way to put it. Worth is in the eye of the buyer.

In the end if people are happy spending the money far be it for my to pass judgement. I just think it's unnecessarily expensive and nothing you supporters say will change my opinion.

Oh and BTW...what about the HD releases that are nothing more than low res copies or worse still....up-samples? That's not a rip off?

Thanks but I'll spend my money on physical media until I see a better value in these HD (sic) downloads.