Tuesday, August 27, 2013

BBC News - the cost of a CD

The BBC News website has an article called  If CDs cost £8 where does the money go?

The article starts with this:
Despite digital's complete dominance of the singles market, most albums are still bought on CD. The average cost is £8 but where does the money go? Of 100 million albums sold in the UK last year, 70% were CDs.
It also includes this graphic:

Later in the article the percentages for each part are given.  I am going to blank out the percentages so a class could work them out.

Here is the blanked out version:
About ##% goes to the artists, while ##% goes to the label, with a ##% cut going to the government in the form of VAT (applied at 20% and therefore 1/6 of purchase price). About ##% goes to the retailer, while the rest goes to manufacturers (##%), distributors (##%) and the spend on administering copyright (#%).

And here is the original version:
About 13% goes to the artists, while 30% goes to the label, with a 17% cut going to the government in the form of VAT (applied at 20% and therefore 1/6 of purchase price). About 17% goes to the retailer, while the rest goes to manufacturers (9%), distributors (8%) and the spend on administering copyright (6%).

Further thoughts:
The graphic refers to the 'Record Company' while the text calls it 'the label'.
Why is VAT applied at 20% only 1/6 of the purchase price?
Is it easier to draw a pie chart from the original data or from the percentages?



1 comment:

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