Well the quality of the songs varries. The thing is, most of them wish to make a song that would become a hit in Europe. This means that it would apeal to the majority of listeners across the continent.
Usually there aren't so many big names, although some real giants in the European music industry apeared in the contest (like ABBA, Toto Cotugnio,...). The thing is, the songs for the contest don't get such strong promotions because they aren't meant to be sold, but for the contest primarily. To the promotion is completely different - and it's unfortunately the promotion of a song that makes most people like or dislike a song.
Also the songs aren't made in a studio - although for the past few years they are using a playback (which is really a shame) the performer still has to sing live. If you get the studio versions of the same songs they are ususally much more apealing.
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