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



Price of Casette



Projected Sale of CD



Projected Sale of Casette




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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