Retail Track: Stepping Up To The Plate

Although we all know the CD is on its downward spiral, the 15% drop in U.S. album sales in the first month of this year has even industry veterans startled. If the labels are ever going to step up to the plate and do something about physical product, now is the time.

For one, Warner Music Group (WMG) is readying to launch its DVD album, which is geared to give consumers more bang for their buck as well as features aimed at the digitally advanced music fan. Titles are expected before June.

It remains to be seen if consumers want the new configuration. But if the effort doesn't get a worthwhile test in the market, we may never find out. To be sure, the retailers will all be onboard. But if the DVD album is to be given a chance to resonate with the consumer, what it really needs is support from other major labels.

Unlike DVD audio, which allotted most space on the disc for 5.1 surround sound audio, the DVD album allocates only about 10% of the space for music, which is enough to fit a full album.

The rest of the space can contain video (even high definition), whether music or artist interviews, along with computer-ready features. Depending on what the labels and artists want, such features might include, say, ringtones or digital booklets with artwork and lyrics that could be downloaded to the computer. Other possibilities include applications that could let users create their own mobile content from the music on the disc, or that could be used to unlock content from online locations or to open up fan sites.

While it won't play in traditional CD players, the DVD album obviously will play in DVD players, as well as computers with CD-ROM drives or ones that can play DVDs. Although DVDs are usually copy-protected, the latter feature enables at least the music to be transferred off the disc to portable players or burnt to CDs.

WMG has solicited support from the other majors on the DVD album, but those majors say they are waiting to see the final version of the configuration. And in case you haven't noticed, a one-label effort will not save the physical goods side of the industry. In the last couple of years, Sony BMG Music Entertainment tried mighty hard with the DualDisc, putting out about 100 titles.

While retailers wholeheartedly supported it, I don't think the other majors that came out with titles in the format—WMG, Universal Music Group and EMI, which issued only about 35 titles combined—had their hearts behind it.

Likewise, when UMG launched JumpStart in an effort to combat the downturn in sales with lower CD prices, it was privately lambasted by competitors. Retail's support initially was mixed too, but that has shifted to where more merchants like it than not.

Since WEA didn't zealously support its initiatives, some of those at the majors who have stepped out before, and found it lonely out there, may think now is the time for payback. But can the industry afford to let that happen when digital is still not making up for the physical decline—let alone the accelerated one we have so far this year?



MAKING TRACKS: Due to the layoffs at EMI Music Marketing, Susanne (Fitzsimmons) Elliott, who was a marketing director for major accounts, is seeking opportunities. She can be reached at susanne.elliott@ hotmail.com or 201-575-0634. Likewise, Central regional director Dave Saunders, who can be reached at buffin847@yahoo. com or 312-523-1079, and Southeast regional director Jeff Ivan at 678-524-3715 are on the job hunt, as is Paul Lanning, an EMI sales rep with 30 years' experience selling all types of accounts, at 203-981-6205 or mylanning@sbcglobal.net.

Outside EMI, Jamie Galgano, formerly GM of music wholesaler Galgano Music Distributors, is seeking opportunities and can be reached at galganojg@yahoo.com or 847-571-5380. ••••

For 24/7 retail news and analysis, see billboard.biz/retail.