Shipping and handling's where they get you (something like $7/disc, if I remember correctly). They also count on you being too lazy to reject the CD they send you every three weeks (the Featured Selection). The Featured Selection costs something like $22 if you take it without a discount.
In addition, BMG signs contracts with the publishers to get their discs at a discount--that's why the packages have the BMG badge of shame on the back, and why there are some artists they don't carry.
ProTip: if you forget to fill out the online rejection form for a featured selection, when it shows up in your mailbox, write Return to Sender on the box without opening it and drop it in a USPS mailbox. They have to take it back and erase their charge from your account: it's The Law.
