The most expensive part of a CD is the jewel case. In 1995, material costs were 30 cents for the jewel case and 10 to 15 cents for the CD. Wholesale cost of CDs was $0.75 to $1.15, which retailed for $16.98. On average, the store received 35 percent of the retail price, the record company 27 percent, the artist 16 percent, the manufacturer 13 percent, and the distributor 9 percent. When 8-track tapes, cassette tapes, and CDs were introduced, each was marketed at a higher price than the format they succeeded, even though the cost to produce the media was reduced. This was done because the apparent <answer>value increased</answer>. This continued from vinyl to CDs but was broken when Apple marketed MP3s for $0.99, and albums for $9.99. The incremental cost, though, to produce an MP3 is very small.
Why did the cost of audio music increase when the production costs decreased?
value increased