ABSTRACT
A record withdrawn from normal distribution by the manufacturer and removed from the company’s catalog. In publishing terms, a cutout is “out-of-print.” The number of cutouts in the pop/rock field may be as much as 85 percent of a company’s issues. Records that fail to break even, so-called stiffs, are quickly withdrawn and usually sent to a rack jobber for disposal. Like remaindered books, those stiff records are found in bargain sections of the shops, often selling at greatly reduced prices. Retailers have generally denounced this practice as one that undermines their sales of standard material, and requires excessive paperwork. Objections come also from the artists represented on cutout discs, whose royalties are reduced and whose reputations are thought to be injured. Record companies, on the other hand, justify cutouts because they claim that royalty fees are so inflated that only major hit records are profitable.
