The Suggested Retail Price of a CD or vinyl album is the price a Distributor “suggests” its retailers use when selling the music to an end consumer. As the name implies, businesses are not required to sell the music at the Suggested Retail Price, though contract terms nearly always bind the retailer to a minimum price. Record companies have traditionally used Suggested Retail Price to calculate the Royalty Base Price for artist royalties, though wholesale price (PPD) is used more often today.
Music Business Past vs. Present
There is a new trend in the music business that has record labels sweating in the boardroom. This new trend is called ìDo It Yourselfî (D.I.Y.) . With Digital Technology anyone can start a record label and have a personal studio on their computer. There are a number of free or (very inexpensive) studio recording software applications that allow an artist to record and distribute their own material without the help or control of any other record label.
