The advent of original soundtracks produced in MP3 format has retailers worried. One shopkeeper stated the following reason-
First and foremost the margins are quite low. While I can send a regular CD for approx. Rs. 150/= and earn a margin of Rs. 25-30 at an average, in case of MP3 this comes down substantially since its cost is in the range of Rs. 60-80/=. Fair enough, I may still manage to cover some ground due to the volume factor as it is bound to grow, but then what happens to the other titles that I wish to sell.
Typically these original MP3 CDs come with a selection of tracks from other films. The retailers are worried that including additional soundtracks hurts the music sale of the regular audio CDs for those films. The shop owners have adopted to keep the MP3 CDs away from their displays and sell them only if a customer demands it.
This is a worrisome trend. Although I can understand that it makes business sense for the mom & pop music shops, I am afraid that such tactics will hurt the adoption of original digital music. They need to understand that a lower margin coupled with a small loss from the soundtracks of older movies is better than no business at all, which is what will happen when the kids get pirated music online for free.
[via IndiaGlitz]
Tags: bollywood, bollywood music, bollywood news
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