Monday, July 14, 2008

Economics of Music (Audio) Rights

I was wondering why someone would buy Pritam's Sinngh is King music rights for 5 Crores. Hence, I tried to perform some number crunching. Here it goes….

Cost of Music Rights

 

Rs. 3,50,00,000

Price of a Audio CD

 

Rs.110

Price of Casette

 

Rs.48

Projected Sale of CD

2,50,000*110

2,75,00,000

Projected Sale of Casette

2,00,000*48

96,00,000


 

After doing the basic maths, I find it little amusing. After all, it doesn't seem that much bad economics provided they are able to sell good number of music CDs. I believe, Telugu movies are still able to sell good number of CDs / cassettes even now. Probably, they should release the official mp3 also for some Rs.8 or so to make life more interesting.

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