Dvd-v Starts To Make Impact On Music

Already embraced enthusiastically by the movie studios, DVD-Video is slowly being adopted by music companies.

Sony Music leads the way among record companies, releasing 131 titles since 1997. WEA Distribution comes in second, with at least 103 titles out by year's end.

BMG Entertainment has released 84 DVD-Vs, according to the DVD Release Report. Universal Music Group, which has released 48 titles since DVD-V's 1997 launch, will release eight more titles by the end of this year and has 24 in development for next year. EMI-Capitol has released 25 DVD titles since the format's bow.

Retailers suggest that record companies ensure they know to whom they are marketing their releases. "A couple of formulas need to be instituted before it can be successful," says Best Buy senior VP of enterprise entertainment Joe Pagano. One suggestion he has would be to coincide music-DVD releases with their DVD-Audio companions. In addition, Pagano says the format works better for vintage artists and that pricing must be under $20. "There's an ongoing demand for this product, but you have to know your customer and market it to them."

BONUS MATERIAL IS KEY

Like his competitors, Universal Music Enterprises president Bruce Resnikoff says the key selling point for DVD-Vs is new bonus material. "Taking advantage of [the format's] added-value aspect is critical."

Upcoming UMG titles will feature Rush, Dire Straits, the Moody Blues, Bryan Adams, and ABBA. The last of which will be released to coincide with the Broadway debut of the Abba musical Mamma Mia! in October. All will have such bonus features as unreleased tracks and interviews. "We're not just converting a VHS release, we're making the DVD better," Resnikoff says. Other releases on the schedule are DVDs from Joe Jackson, the Police, and the Jackson Five.

WEA senior VP of catalog sales Bob Carlton says the distributor is waiting to hear back from its participating labels about a "large list" of titles it would like to see released on DVD. The company distributes product from Warner Music Group, Elektra, and Atlantic. "There's a lot of sales to be had," he says, "and we're pushing for great catalog titles that are still selling well on VHS." Carlton says DVD-V releases will be coordinated with new CD releases.

WEA-distributed Rhino Home Video has forthcoming titles from INXS, Skid Row, and Foreigner, according to Rhino senior VP Arny Schorr.

EMI-Capitol will release Blind Melon's Letters From a Porcupine Sept. 11. Originally released on VHS in 1996, Letters has been greatly enhanced for the DVD version. The disc contains twice the amount of material found on the VHS, including band interviews, 19 live performances, and eight videoclips.

high costs hinder majors

Despite its increasing DVD slate, EMI-Capitol still sees the format as a movie medium. "DVD is sizzling hot, but it's primarily theatrical programming," says EMI-Capitol VP of strategic marketing Marc Rashba. "Right now, there's a small market for DVD-music product, just as there is for VHS." Rashba says high costs for publishing rights and manufacturing have also hindered the label in releasing more DVD titles.

Due to that relatively small audience and the often high costs associated with production, the majority of DVD-Vs devoted to music are still handled by independent companies, to whom the majors license material.

According to the DVD Release Report, Image Entertainment is the leading supplier of music-video product. By the end of October, it will have released 423 music titles since the format's launch. Pioneer Entertainment, the third-largest supplier in the category (coming in after Sony), will have released a total of 111 titles. Other key indie players include Coming Home Entertainment Group, Eagle Vision, Metropolis DVD, and Music Video Distributors.

Best-known as a laserdisc distributor of licensed studio product, Chatsworth, Calif.-based Image was forced to change its strategy when movie companies decided to release their own DVD product. Image VP of marketing Garrett Lee says, "We had to reinvent ourselves or go away."

Lee adds that much of Image's early music releases were laserdisc titles transferred to DVD, with added footage.

Pioneer also broke into the business by converting its laserdisc library to DVD, but executive VP of business development Jim McGowan says several music labels and artists began approaching the company for licensing deals.

"It's a capacity issue," McGowan says. "Record labels don't view DVD as their primary source of revenue, and they want to remain loyal to marketing CD product." On Aug. 28, Pioneer released Pat Metheny Group: Imaginary Day, a concert video with behind-the-scenes footage filmed in 1998 at the Mountain Winery in Saratoga, Calif. Presenting Billie Holiday, also out Aug. 28, includes three newly discovered performances, as well as personal letters, unpublished lyrics, and other archival material.

MUSIC DVDS SELLING WELL

Unlike movies, individual music DVD-Vs have yet to sell millions of units, but they do sell well. According to Pioneer, its Queen: We Will Rock You, a 30-year-old concert video without any bonus features, has sold 125,000 units on DVD. The company will release an updated version Oct. 2, featuring a new digitally remastered print, a trivia game, and audio commentary by director/producer Saul Swimmer. McGowan says, "You're not going to ship a bunch of units like a movie, but this is a catalog re-order business."

Lee agrees that the music-DVD market can be profitable even though unit sales are smaller. Image makes up the difference by releasing product for every type of music fan. Classical titles make up the bulk of Image's library. Bizet's Carmen, filmed at London's Covent Garden Opera House, and the Australian Opera Company's production of La Bohème have each sold 15,000-20,000 units, according to Lee. "We have some titles that will do a couple of thousand units, but the great thing about having them is that you can count on 'x' number of units every single month," he says. "These titles have catalog legs, and sales will grow in proportion to the player base."

In addition, Image recently signed a 10-year DVD-distribution deal with power-pop label Smile Records. The first title from the pact will be the Sept. 25 release of The Knack Attack.

In a separate deal, the company will begin releasing footage from the TV series Music in High Places, which features well-known musicians exploring different cultures around the globe. It launches Tuesday (4), with Collective Soul in Morocco and Boyz II Men in South Korea. Each release will include performances, as well as one hour of bonus material not included on the TV broadcast.