Cut-out (recording industry)
Encyclopedia
In the recording industry, a cut-out refers to a deeply-discounted or remaindered
copy of an LP, cassette tape, Compact Disc
, or other item.
As tapes and CDs supplanted LPs, the mechanisms for indicating a cut-out changed. On cassettes, a hole tended to be punched or burned through the case and through its printed insert. On CDs (a practice that continues today), a section of varying size is taken out of the spine of the jewel case and its paper track listing. Other methods of cutting CDs include punching a hole through the UPC
and clipping a corner off of the front insert.
Cut-outs are typically wholesaled to retailers as non-returnable items, meaning that the store cannot send them back to the distributor for a refund; the reason for the cut or hole in the packaging is to mark the item as non-returnable. The marking also serves to prevent the retailer from selling the discounted item at full price. Recording artists also typically do not get full royalties from cut-outs, since they're sold at a "promotional" cost, far less than the retail price. Except for the physical damage to the liner notes and outer case, the inner disc (LP or CD) is generally unharmed by the cut-out process, and sounds the same as the originally-sold recording.
A similar cut-out procedure was practiced with the laserdisc
home video format as well as the 8-track tape cartridge. The practice has also been extended to DVD
.
Remaindered book
Remaindered books are books that are no longer selling well and whose remaining unsold copies are being liquidated by the publisher at greatly reduced prices...
copy of an LP, cassette tape, Compact Disc
Compact Disc
The Compact Disc is an optical disc used to store digital data. It was originally developed to store and playback sound recordings exclusively, but later expanded to encompass data storage , write-once audio and data storage , rewritable media , Video Compact Discs , Super Video Compact Discs ,...
, or other item.
History
When LPs were the primary medium for distribution or recording, manufacturers would physically cut the corner, punch a hole, or add a notch to the spine of the jacket of unsold records returned from retailers; these "cut-outs" might then be re-sold to record retailers or other sales outlets for sale at a discounted price. A special section of a record store devoted to such items was known as the cut-out bin or bargain bin.As tapes and CDs supplanted LPs, the mechanisms for indicating a cut-out changed. On cassettes, a hole tended to be punched or burned through the case and through its printed insert. On CDs (a practice that continues today), a section of varying size is taken out of the spine of the jewel case and its paper track listing. Other methods of cutting CDs include punching a hole through the UPC
Universal Product Code
The Universal Product Code is a barcode symbology , that is widely used in North America, and in countries including the UK, Australia, and New Zealand for tracking trade items in stores. Its most common form, the UPC-A, consists of 12 numerical digits, which are uniquely assigned to each trade item...
and clipping a corner off of the front insert.
Cut-outs are typically wholesaled to retailers as non-returnable items, meaning that the store cannot send them back to the distributor for a refund; the reason for the cut or hole in the packaging is to mark the item as non-returnable. The marking also serves to prevent the retailer from selling the discounted item at full price. Recording artists also typically do not get full royalties from cut-outs, since they're sold at a "promotional" cost, far less than the retail price. Except for the physical damage to the liner notes and outer case, the inner disc (LP or CD) is generally unharmed by the cut-out process, and sounds the same as the originally-sold recording.
A similar cut-out procedure was practiced with the laserdisc
Laserdisc
LaserDisc was a home video format and the first commercial optical disc storage medium. Initially licensed, sold, and marketed as MCA DiscoVision in North America in 1978, the technology was previously referred to interally as Optical Videodisc System, Reflective Optical Videodisc, Laser Optical...
home video format as well as the 8-track tape cartridge. The practice has also been extended to DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
.