Merge records pricing

So I go to buy the new East River Pipe and compare the pricing on Merge's site and Amazon:

Mp3 download: Amazon $7.99/Merge $8.99
CD: Amazon: $17.49 (plus shipping)/Merge $13.98 (free shipping)

I've got no interest in the CD, just the download, but how strange is this pricing structure? If they're cutting out the middle man, why can't they at least give me as good a deal on the download as Amazon, when they're giving me a MUCH better deal (practically 75% better factoring in shipping!) on the CD?

Either Amazon is OK with smaller margins or it could be an infrastructure issue for merge.

Amazon is much better equipped to deliver media over servers to where Merge is probably just building up to this technology to handle mass quantities and e-commerce in this fashion.

on top of that, most big distributors - like amazon and itunes - really squeeze smaller labels and beat down their prices (think: walmart).  $8.99 is most likely what merge would like to sell the MP3s for, but $7.99 is amazon's price - so if merge wants to be on amazon, they need to lower their royalties until $7.99 is met (which includes amazon's profit).

Amazon is mostly concerned with undercutting itunes and takes a loss.

Not everyone in the industry is as enthusiastic. "Been working for nine months on something that will sell for 3.99 on Amazon MP3," the independent rock group Fleet Foxes wrote last month on its Twitter feed. "That's about the price of a whoopie cushion."

http://goo.gl/ND2iV

the comparison between FF's latest album and a woopie cushion is apt, so the price equivalency is understandable.

sweetcell wrote:
the comparison between FF's latest album and a woopie cushion is apt, so the price equivalency is understandable.

Oh, shit. LOL. The slow, high pitched ones.

sweetcell wrote:
the comparison between FF's latest album and a woopie cushion is apt, so the price equivalency is understandable.

whether an individual likes it . . . should never have bearing on the value of the art.  i'm sure there are people out there who think everything radiohead and daft punk have ever done should be available on free fisher price plastic records for toddlers, through mcdonalds giveaways in happy meals.

Woopy cushions have so much more sonic range!

fyi, i have nothing against FF… their last album is just fine, i have tickets to see them at DAR.

it was a quick easy auto-snark, i.e. this board's currency.

Chip wrote:
Not everyone in the industry is as enthusiastic. "Been working for nine months on something that will sell for 3.99 on Amazon MP3," the independent rock group Fleet Foxes wrote last month on its Twitter feed. "That's about the price of a whoopie cushion."

http://goo.gl/ND2iV

I'm surprised they said that. The bands don't lose money on that, only Amazon does. Plus it gains the band much more notice. Amazon mp3 is basically the reason arcade fire and the decemberists got number one records.

The thing is, assuming you're willing to pay for music in the first place, it's odd to see Merge basically give no incentive to purchase mp3s from them. I realize I should buy from Merge, for more money, out of the goodness of my heart, I guess? But failing that, why not say "pay a buck more than Amazon, but we'll throw in this exclusive remix"?

I guess it cost Merge more money when consumers buy mp3s from them?

I use 7digital sometimes (www.7digital.com). Sadly, the new East River Pipe is $9.90 there. (New PJ Harvey and Mogwai albums are $5 each, though!)

Amazon's mp3 prices go up and down for the same release so it might be cheaper than merge now then $1 more later on. I assume labels selling direct don't want to get into this kind of pricing and just have a flat rate.

I like the matador store…you can buy FLACs.

sweetcell wrote:
fyi, i have nothing against FF… their last album is just fine, i have tickets to see them at DAR.

it was a quick easy auto-snark, i.e. this board's currency.

dont ruin a righteous zinger with the truth

Chip wrote:
I like the matador store…you can buy FLACs.

I like the Bandcamp store. You get to pick whichever format you prefer, including FLAC.

Weird, I just checked Amazon and the CD price is now $16.19 (down from $17.99 yesterday), what is going on?

Jaguar wrote:
I like the Bandcamp store. You get to pick whichever format you prefer, including FLAC.

Definitely…and ALAC! I wish more bands were on there.

Chip wrote:

Jaguar wrote:
I like the Bandcamp store. You get to pick whichever format you prefer, including FLAC.

Definitely…and ALAC! I wish more bands were on there.

I've got mixed feelings about that. Right now it's loaded with lots of lesser known bands, many of whom I tend to prefer. Lots of very good ones too if you know who to look for. Also, their prices are very good and set by the bands. A lot of free downloads too that bands give away to promote their band; again, in the format of your choice.

If they start taking off too much, I fear it will end up the same way as all the other once great music sites. Too big to manage and eventually sold off to some corporation. Or worse, they close up shop. Once that happens, it's destroyed by extreme commercialism and the prices go up. I love it the way it is now.

We're hitting peak oil and major detrimental climate change is occurring and you guys are worried about this?  :o :o :o