SirFozzie
09-11-2007, 02:23 PM
http://www.reuters.com/article/technologyNews/idUSN0921673020070910?feedType=RSS&feedName=technologyNews
Oh this is brilliant. Brilliantly stupid.
One new song, one old song, a remix, and a ring tone for $6-$7?
The Ringle Fever's Catching!
Sources suggest the ringle will carry either a $5.98 or $6.98 list price, while the wholesale cost to retailers will be less than $4. If it's $5.98, ringles will have a 31 percent gross margin, shy of the 35 percent profit margin that CD albums carry nowadays; if it's $6.98, that would give retail a 42.7 percent gross margin, similar to the profit margin cassette and vinyl albums enjoyed back in the day.
This will be a flop of DIVX proportions.
Oh this is brilliant. Brilliantly stupid.
One new song, one old song, a remix, and a ring tone for $6-$7?
The Ringle Fever's Catching!
Sources suggest the ringle will carry either a $5.98 or $6.98 list price, while the wholesale cost to retailers will be less than $4. If it's $5.98, ringles will have a 31 percent gross margin, shy of the 35 percent profit margin that CD albums carry nowadays; if it's $6.98, that would give retail a 42.7 percent gross margin, similar to the profit margin cassette and vinyl albums enjoyed back in the day.
This will be a flop of DIVX proportions.