so acc doesn't have drm?
Not that I'm aware of. AAC means "Advanced Audio Compression" and it's merely a better compression algorhythm based on MPEG-4 from the same folks who created the MP3. They've got something else in the pipeline, of course.
Do you even understand what normal record stores get off of a cd(99% positive it's less than 30%, possibly a buck
Actually, I do - since I am an indie musician who follows the music biz closely and I've worked in record stores (both chain and independant) and know all about the spread between wholesale and retail prices.
The typical WHOLESALE cost of a CD that RETAILS for $17.99 is ~$11.50-$12.00. That means if a store, like a mall chain store such as Sam Goody or Camelot, sells at list, they're making about 33% profit. "Big box" stores like Beast Buy, etc. sell their CDs for only a couple of bucks over list (or as a loss leader for the new releases you see for $10) because they hope you'll pick up a TV while you're there. The make their money thru VOLUME, not high margins, on the correct assumption that more units will shift at $14 than $18. It's basic first-day ECON101 - you sell more when the price is less.
There's a lot of overhead and even more greed built into the major label cost pie: Starting with the $18 MSRP, the retailer keeps ~$6, the songwriters get ~75¢, the band (if it's recouped - another problem altogether) may get ~$1.50 or so, leaving nearly $10 in the labels/distributors hands to cover their bad bets and wasteful promo costs.
However, I don't think the prices will stay at a buck a song forever, hell, you should be rejoicing that they've come down from the $2.99/ea. the labels wanted a year ago. They've had no vision of the future and are being dragged into the present kicking and screaming. It's gonna take time for them to clue up a bit more. UMG's attempt to cut prices is a start, but more needs to be done by all labels. It's taken them 4 years to begin responding to customer demands.
P2P and Napster arose partly because some people are f*cking thieves who believe they're entitled to help themselves to what they want, when they want it, but the majority were people who when faced with the non-choices of paying $18 for a couple of songs or poaching lossy versions for free went with the cheaper option, legality notwithstanding. If only the labels had gotten smart and cost prices YEARS ago, they wouldn't be suing kids for downloading now. Morons.
Last night, from the tip here, I went to BMG's site and bought a DOZEN CDs for $6.99 each. I bought stuff that I'd NEVER buy even for a buck more - low prices sell music and as a musician, I want my music to sell to as many people as possible. At my level, you aren't gonna see me on MTV Cribs, but if I can sell enough to pay for the recording of the next record, I'm happy for now.