Why Is Music Cheaper Now? It’s Supply & Demand.
Artists such as Sufjan Stevens think that selling albums for $3.99 is unfair, but Stevens does not recognize that the market has caused prices to fall. Brian Franke explains why music is cheaper now with an economics lesson on supply and demand. He explains that when people want more (higher demand), then people will pay more to get it. When there is a huge supply of music, then people demand less of it and want to pay less. He explains the significance of several events that have impacted the supply and demand of music such as file sharing, new technology, and the RIAA.
“Considering all the new factors I hashed out, it’s not a surprise music is as cheap as a latte. And don’t think for a moment it’s going to go back to when albums were $18.” (Read On)