Are Promotional CDs Worth Less Than Original CDs?

[George]

I went into a used CD shop in town yesterday and they had two brand new CDs priced exactly the same. One was a promo copy, the other wasn't. There was a hole drilled into the case that went into the UPC code as well. I asked the clerk if promo copies weren't worth less. He said, no they were priced as marked. I asked him to kindly answer the question that I had asked and he blurted out "well do you want to price them!!" At this point I realized that I wasn't dealing with a reasonable mammal, so I thought I'd ask you guys what you think.

Would you pay the same for a promo copy as a non-promo copy? Isn't the non-promo copy worth more? 

[head-case]

Ultimately it's worth what you're willing to pay.   That said, most people are not willing to pay as much for a copy that has been marked as promotional.

[Que]

Once a CD is OOP the difference in price - if the issues are identical in terms of booklet, etc. - seems to dissapear. Funny thing is that record companies often prohibit the sale of promotions, but shops do it anyway... (and they got it for free! )

Q

[KevinP]

I think you mean 'cut outs,' which are not necessarily promotional copies, and yes, they're usually worth less.

This is more about vinyl, but the information is essentially the same for CDs: http://members.tripod.com/~Vinylville/faq-8.html

[George]

Once a CD is OOP the difference in price - if the issues are identical in terms of booklet, etc. - seems to dissapear. Funny thing is that record companies often prohibit the sale of promotions, but shops do it anyway... (and they got it for free! )

Q

Yeah the CD in question is not OOP. 

[George]

I think you mean 'cut outs,' which are not necessarily promotional copies, and yes, they're usually worth less.

This is more about vinyl, but the information is essentially the same for CDs: http://members.tripod.com/~Vinylville/faq-8.html

Thanks for the link. Very helpful! 

I found this:

In the most recent years, labels have marked their promotional
copies the same as a cut-out.

[BachQ]

It's probably illegal for a retailer to sell a "promotional copy" ........

[MishaK]

It's probably illegal for a retailer to sell a "promotional copy" ........

For a retailer that may be the case, but I don't think anything prevents a private individual from selling a promo CD to a used CD store and then the store reselling it to a third person. A sales prohibition doesn't attach to a chattel for the life of the chattel. That would be profoundly silly and anti-capitalistic.

[BachQ]

For a retailer that may be the case, but I don't think anything prevents a private individual from selling a promo CD to a used CD store and then the store reselling it to a third person. A sales prohibition doesn't attach to a chattel for the life of the chattel. That would be profoundly silly and anti-capitalistic.

I'm referring to the intellectual property rights (copyrights) ...... not the chattel divorced from the intellectual property rights.

On many (most) promotional Cd's, one can find language such as this: "Licensed for promotional use only.  SALE IS UNLAWFUL".  This represents an extremely limited license, which is infringed by any resale (or any use other than that which is expressly set forth in the limited license to the recipient of the promo CD).  Thus, commercial sales of a promotional CD constitutes copyright infringement. Cd's marked "for promotional use only" must be freely given away and not sold.  If a CD retailer sells a promotional copy for a profit, he could become primarily or secondarily liable (whether vicariously or contributorily), in violation of federal copyright laws.

Depending on the retailer's level of illicit activity, there could also be criminal liability, at least under US laws.

Illicit eBay sales are far more problematic.  If one buys a CD on eBay and it's stamped FOR PROMOTIONAL USE ONLY, the RIAA would like to know about it.

[George]

It's probably illegal for a retailer to sell a "promotional copy" ........

Would the illegaly sold CD be worth less than the original?

[Szykneij]

Would you pay the same for a promo copy as a non-promo copy? Isn't the non-promo copy worth more? 

If they were used, I wouldn't care. I'd pay the same price for promo or non-promo. In your example, though, they were "new", so I would expect the drilled, "promo" stamped one to cost less.

[George]

If they were used, I wouldn't care. I'd pay the same price for promo or non-promo. In your example, though, they were "new", so I would expect the drilled, "promo" stamped one to cost less.

Thanks.

I should post the number to the store so all those who agree with me could call the store and inform them that they are wrong. 

[orbital]

Thanks.

I should post the number to the store so all those who agree with me could call the store and inform them that they are wrong. 

If it was a pop cd, you might have missed a few extra tracks (or remixes)by purchasing the promo version 

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I'd think that the sale prohibition would end with the initial transfer of ownership. What if that CD becomes OOP, even a collector's item? Will I not be able to sell my CD because it is marked promo?

[Szykneij]

Thanks.

I should post the number to the store so all those who agree with me could call the store and inform them that they are wrong. 

Probably a better way to ask the question would be "should a promo CD sell for less than a new non-promo CD". A brand new CD is expected to be in perfect condition and any flaws (including the promo designation) should involve a discount from the mint price.

[DavidW]

Once a CD is OOP the difference in price - if the issues are identical in terms of booklet, etc. - seems to dissapear. Funny thing is that record companies often prohibit the sale of promotions, but shops do it anyway... (and they got it for free! )

Q

Now that's an insightful answer!  I just didn't think of it, but once you said it, yeah that's got to be right.

[longears]

They are worth less (not worthless) to me...as are "record club" CDs.  Occasionally I'll buy a used CD from AMZN marketplace that's a promo or club CD not identified as such by the seller.  Pisses me off because I would not have bought it had the seller honestly disclosed the nature of the merchandise.  Caveat emptor. 

[Bogey]

At this point I realized that I wasn't dealing with a reasonable mammal, so I thought I'd ask you guys what you think.

Great thread George.  However, this line has me laughing so hard that I will have to re-read the responses when I believe I can handle it.  (still LOL)

[DavidW]

I asked him to kindly answer the question that I had asked and he blurted out "well do you want to price them!!"

That's when you say in the most authoritative voice that you can muster "you know they're not worth much more than a dollar.  You wouldn't want to have to call your manager and get into trouble for bothering him would you?  I'll tell you what, the most you could maybe sell these cds for is $3 at the most, but only a few would sell at that price.  So I'll do us both a favor, we'll split the difference and call it $2 a cd, and you make enough of a profit to not upset the manager on top of moving merchandise that was collecting dust, and I get my cds.  What do you think?"

[Bogey]

That's when you say in the most authoritative voice that you can muster "you know they're not worth much more than a dollar.  You wouldn't want to have to call your manager and get into trouble for bothering him would you?  I'll tell you what, the most you could maybe sell these cds for is $3 at the most, but only a few would sell at that price.  So I'll do us both a favor, we'll split the difference and call it $2 a cd, and you make enough of a profit to not upset the manager on top of moving merchandise that was collecting dust, and I get my cds.  What do you think?"

Would you use your best Clint Eastwood "Dirty Harry" voice here David.

Man this thread is entertaining.

[DavidW]

Would you use your best Clint Eastwood "Dirty Harry" voice here David.