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From MCGaudio@aol.com
Subject Re: for Stewart and the subscribers to eMusic
Date Tue, 8 May 2007 23:52:45 EDT

[Part 1 text/plain US-ASCII (0.8 kilobytes)] (View Text in a separate window)

Plus you're also eliminating the shipping and warehousing costs, returns 
costs, breakage/shortage losses, and cold inventory costs.  Overhead is without a 
doubt reduced, especially if you have large numbers of returns or unsold 
product, which is increasingly common in the record industry.

Mark 


"Jaimie Vernon" <bullseyecanada@hotmail.com> wrote:

> Digital distribution does NOT reduce overhead. A $100,000 album STILL costs 
> 
> $100,000 whether you put it on a CD or send it into the ether as an MP3 -- 
> you're eliminating manufacturing costs, but all the other pre-production, 
> production, marketing and promotion costs STILL exist.




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