The wholesale price at which a record label sells a recording to retailers or distributors. In recording agreements, artist royalties are often calculated as a percentage of the PPD for each unit sold (physical or, in some cases, digital equivalents). The applicable percentage represents the artist’s royalty rate before contractual deductions and recoupment of advances and recording costs. PPD is widely used in the music industry as a standardized basis for royalty calculations tied to the label’s wholesale price rather than net profits.