Record Label Marketing, 2nd Edition

 

 

 

CHAPTER 6

The Profit and Loss Statement

Amy Macy

CONTENTS

Profitability … or the Lack Thereof!

Recording Costs

Marketing Costs

Contribution to Overhead

Ways at Looking at Project Efficiency and Effectiveness

SoundScan and Sell Off

As a Predictor Equation

Breakeven Point

A Look at Real P&L Statements

Glossary

PROFITABILITY … OR THE LACK THEREOF!

Record companies use profit and loss (P & L) statements both to predict the success of a record prior to its release as well as to analyze a project as it nears the end of its lifecycle. To understand the “math,” let’s look at all the components of a P & L, recognizing the financial significance of every line item.

SRLP — Suggested Retail List Price

The suggested retail list price (SRLP) is set ...