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The price has absolutely nothing to do with physical media like CDS. The author is completely missing the fundamental reason that entertainment, including sports, costs what it does.
In my city of 250,000 there are dozens of bands you can see live for free. There's a minor league baseball team and a college team nobody watches, though tickets are just a couple bucks. Thousands of bands post their music on myspace and youtube, but nobody listens to the free music they post. There's no scarcity of entertainers.
So why are people paying thousands of dollars for a ticket to Sunday's game when they coulda watch another team for free? People pay for or steal Nicki Minaj rather than listening to Leannasuraus Rex's free music for a reason.
The reason is that consumers get value from having the record company scout for the best talent, hook them up with the best producers in the world, record them in a multi-million dollar studio, and then spend millions letting the consumer know about the new talent.
If the record company wasn't doing something the consumer finds valuable, they could very easily skip the record company and download tons of free music. Instead, they want the record company to do the work, but don't want to pay for those services.
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