Red Learns That Selling Audio Differs From Marketing Video

Independent record distributor RED, the fifth-largest distributor of music videos and the leading independent distributor in that category according to the Billboard 2001 year-end charts, has learned a few lessons about the music-video industry.

Though many industry executives reasoned in the early days of the videocassette that musical acts that sold millions of copies of a new album could count on fans to purchase their video efforts as well, even extremely successful music videos never sold through at the level of a successful new recording. New life has been breathed into the category overall with the advent of DVD, but RED has particularly flourished because of its recognition that music-video concerts are preferred over clip compilations and that marketing to an older demographic can be vital.

RED's recent successes have included Marilyn Manson's Guns, God and Government World Tour (Oct. 29), which debuted at No. 1 on the Top Music Videos chart and has sold approximately 20,000 units to date, the company says, and Usher's Live—8701 Evolution Tour (see Picture This, this page).

The Up in Smoke Tour VHS/DVD (May 31, 2001) also spent 10 weeks at No. 1 on the Billboard Top Music Videos chart and has sold more than 600,000 units, according to the company. Other recent titles include 'N Sync's The Reel 'N Sync (Oct. 22) and Los Temerarios' En Concierto Desde El Azteca (Nov. 12).

RED president Ken Antonelli says RED's accomplishment with music videos is part of an industry-wide sales boom the DVD format brought about. He notes, "In the music DVD configuration, the growth has been explosive over the last couple of years. The quality, the sound, the behind-the-scenes footage, [and] the additional information all draw consumer attention. Sometimes these things are also interactive." RED's music DVDs routinely offer 20-30 minutes of additional bonus features.

RED's AUDIO ROOTS

The company's foray into distributing music videos stemmed from its history as an audio distributor. Founded in 1979 as Important Record Distributors, RED initially focused on heavy-metal recording artists. It launched in quick succession the Relativity, Combat, and Effect labels, which provided homes for domestic and overseas heavy-metal artists.

At the same time, the distribution arm coalesced into Relativity Entertainment Distribution, or RED, to sell product from its own and outside labels. The company now distributes a wide range of audio projects from such acts as multi-platinum-selling bands Slipknot, Nickelback, and Train; Three 6 Mafia; Aimee Mann; Baha Men; Jane Monheit; Dishwalla; Delbert McClinton; Mark McGuinn; Josh Joplin Group; Steve Earle; and Kittie.

RED's video distribution is not limited to music titles. It recently signed an exclusive deal with video-production/management company J&N Media to release Jackass personality Steve-O's The Steve-O Video Vol. 2: The Tour Video (Dec. 10). Other Jackass-related titles are expected in 2003. The company also distributes such action and extreme-sports titles as Tricks & Tips projects from pro-skateboarder Tony Hawk, biker Dave Mirra, and snowboarder Todd Richards.

RED's video business currently includes about 400 video titles, a growing sector of which is the music-video category.

STRENGTH OF CONCERT TITLES

Antonelli attributes the increasing sales of RED's music-video titles today to some hard-won wisdom gleaned from its audio dealings and its willingness to research what appeals to consumers.

He says that record labels interested in growing their video-music business have to take an "everything-you-know-is-wrong" approach to music-video sales. For instance, the company realized that clip compilations or scrapbooks of video singles that a band has created for play on music TV hold very little consumer appeal. Consequently, RED's labels no longer give a separate video release to every clip made for rotation on MTV.

"There's not much consumer demand for that style of music video," notes John Thrasher, VP of video for the West Sacramento, Calif.-based Tower Records chain. "Efforts are much more focused now on concert footage."

Antonelli says that such longform videos as concerts, documentaries, or extended concept pieces are much more marketable, because fans are interested in seeing footage of their favorite artists in performance settings. The Up in Smoke Tour, for example, documents the critically acclaimed and controversial tour featuring Dr. Dre, Snoop Dogg, Ice Cube, and Eminem. Behind-the-scenes footage offers fans a rare glimpse into the day-to-day life of the kings of West Coast hip-hop.

The uproar surrounding the tour's content actually gave video sales a boost, Antonelli adds. "It wasn't a very long tour, and the show itself had some ratings issues. A lot of people didn't get to see that show. They were motivated to buy the DVD."

Additionally, the music from The Up in Smoke tour is only available on the video; there is no companion CD.

Even though The Up in Smoke Tour mainly appeals to a young demographic, Antonelli believes that music videos are not just for teenagers anymore and that companies that ignore baby boomers when drawing up their music-video release schedules do so at their own risk. He says that there are a variety of ways in which record companies and retailers can reach those nontraditional music-video consumers.

Older-skewing titles, such as RED's Bee Gees project This Is Where I Came In (June 19, 2001), give a consumer who does not necessarily want to go to that show an opportunity to see his or her favorite artist in concert. Recent music videos that RED VP of sales Dean Tabaac says skew older and have been successful for the company include Genesis: The Genesis Songbook (Jan. 1, 2001), which features the band playing its favorite catalog songs, and Tina Turner's One Last Time: Live in Concert (Feb. 6, 2001), which documents her final stadium tour.

"We're not marketing [music videos] well enough to get to that person in the upper demographics, both in age and income," Antonelli says. "We should be advertising in the AARP magazine. That audience is perfect."

Thrasher agrees, saying that the affordability of home-theater systems during the past several years is also keeping more people in this demographic at home. He says, "If you have surround sound and a decent monitor, it can feel like you're at a concert for 20 bucks as opposed to shelling out $300 for Rolling Stones tickets."