The question is..what are the Stones, and other music groups, REALLY getting from all of this ?
Courtesy of reuters.com...
U.S. Record Stores Get No Satisfaction from Stones
Mon October 6, 2003 04:12 PM ET
By Dean Goodman
LOS ANGELES (Reuters) - If music retailers needed another warning that their future is imperiled from slackening sales, veteran rockers the Rolling Stones have given it to them.
The British band snubbed U.S. record stores late last week by anointing mass market electronics chain Best Buy Co. Inc. as the only seller of its new DVD, "Four Flicks," for four months, and independent record store owners are seething.
From Nov. 11, through the holiday rush, traditional music retailers will be forced to watch as potential customers flock to Best Buy to snap up the 4-disc package being sold for $29.99.
As the music industry reels from plunging sales due in part to Internet piracy, they also are facing heightened competition from mass merchants like Best Buy and Target Corp. that control about 55 percent of U.S. music sales.
These giants often use their muscle to sell music as loss-leading products in hopes that customers will walk out with a newly released $9.99 CD and a $1,000 TV or refrigerator.
Increasingly, the mass market vendors are entering into exclusive deals with top bands such as U2 and the Eagles, though the exclusive sales windows for those acts lasted weeks rather than months.
Such deals are short-sighted and hurt not only traditional retailers, but the music industry as a whole, said Clark Benson, chief executive officer of Almighty Institute of Music Retail, which helps record labels work with music stores.
"The more that a mass merchant like Best Buy ends up having an exclusive, the more it hurts these pure-play record stores," Benson said. "Those stores are the ones where people are really getting turned onto new stuff, not the mass merchants."
Benson said over 1,100 chain and independent record stores have closed in 2003, making it hard for consumers to stumble upon the new music that is the industry's lifeblood and future.
Torrance, California-based Wherehouse Entertainment Inc., which had 339 stores a decade ago, will soon be down to 111 after filing for bankruptcy protection in January. The 95-store Tower Records chain of Sacramento, Calif. is flirting with bankruptcy.
Industrywide, in North America, first-half 2003 music sales fell 11.7 percent to $5.1 billion from the year-ago period.
NO SYMPATHY FOR DEVILS
Some retailers are not only angry, but are plotting revenge.
"The mistake some of these guys may be making is that a lot of retailers are like elephants that don't forget," said Mike Dreese, co-founder of Boston-based chain, Newbury Comics.
Best Buy's two-week exclusive in 2001 for a U2 concert DVD caused Newbury to retaliate by doubling the fee it charged U2's record label for marketing any of its acts. Newbury ended up with about $15,000 in extra income.
"In essence we issued a speeding ticket to them and they paid it," Dreese said.
With the Rolling Stones, Dreese expects he will mark up the band's extensive CD catalog by a few dollars. He expected to lose some customers but said, "we're basically not going to make it easy for them (the Stones) to easily profit off their brand if they're favoring a competitor in a permanent way."
A spokeswoman for the Rolling Stones said the members and their advisors were traveling and unavailable for comment.
Retailers kicked up a fuss earlier this year after the Eagles released a DVD single exclusively through Best Buy for one month, but received no sympathy from the band's manager, Irving Azoff.
Gary Arnold, Best Buy's senior vice president of entertainment similarly shrugged off concerns about its exclusive deals, and said he expected "Four Flicks" would be the company's best-selling music DVD ever.
http://asia.reuters.com/newsArticle.jht ... ID=3565955
U.S. Record Stores Get No Satisfaction from Stones
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mikenycLI
- Posts: 526
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Another version of the story, but with MORE details of the business arrangement AND the new DVD set....
Best Buy's Stones Deal Irks Other Retailers
Sat October 11, 2003 09:15 AM ET
By Carla Hay
NEW YORK (Billboard) - It may be controversial and annoy the competition, but Best Buy's exclusive dealmaking with artists is here to stay -- and it's getting bigger.
Such privileged arrangements, however, may ignite an industry war if other retailers try to outdo each other to secure exclusive deals. Artists, meanwhile, risk losing potential sales when availability is limited to one retail chain.
The Minneapolis-based chain's most recent deal with the Rolling Stones will allow Best Buy to exclusively sell the band's new "Four Flicks" four-disc DVD set (to be released Nov. 11). The arrangement extends at least through the end of the year.
"We anticipate that 'Four Flicks' will be the best-selling music DVD in Best Buy history," says the chain's senior VP of entertainment, Gary Arnold.
BIGGER THAN BIG?
The Rolling Stones' "Four Flicks" has more than five hours of content, including previously unreleased concert footage.
To take top music-DVD sales honors, it would have to beat Atlantic Video's "Led Zeppelin DVD," which shattered music-video sales records during its first week.
"Led Zeppelin DVD" has sold more than 442,000 copies since its May 27 release, according to Nielsen SoundScan.
The Recording Industry Assn. of America has certified "Led Zeppelin DVD" as 10-times platinum, equaling shipments of more than 1 million copies. (A retail music video must ship 100,000 copies to be certified platinum by the RIAA.)
At least one retailer doubts that "Four Flicks" will match or surpass the Led Zeppelin DVD's sales.
"They may sell a lot of the 'Four Flicks' DVD, but not as it could if it were available everywhere," says Kathy Faust, head DVD buyer at Tower Video in downtown New York.
"There are a lot of people who don't live near a Best Buy store, and they can't or won't order the DVD online. All those fans will be left out because of this exclusive deal."
The exclusive Best Buy deal covers only the U.S. and Canada. Best Buy says it has nearly 700 stores in those countries, including Best Buy subsidiaries Future Shop, Geek Squad and Magnolia Hi-Fi.
Longtime Rolling Stones tour promoter Michael Cohl, who represented the Rolling Stones in the "Four Flicks"/Best Buy deal, says the Stones went to Best Buy because of its marketing clout.
"Music videos and music DVDs are often treated like a corner category at retail. But Best Buy had the best machine in place to get behind us and treat the release of 'Four Flicks' the way it deserves to be treated: like a major event."
"Four Flicks" will be released through TGA Entertainment, a multifaceted entertainment company that served as the tour promoter for the Rolling Stones' 2002-03 Licks world tour. Best Buy is selling "Four Flicks" at $29.99 -- a remarkably low price for a new four-disc DVD set.
'A DISSERVICE'
Still, with all the fanfare that Best Buy says it can deliver, other retailers remain unconvinced that exclusive retail deals will have a positive, long-term effect on the industry and consumers.
"Exclusive deals are a disservice to customers, because they result in disappointed customers who can't find the product anywhere else," says Dave Alder, Virgin Entertainment Group North America senior VP of product and marketing. "It's a short-sighted approach to marketing a new release."
To take a stand against exclusive deals, the Virgin retail chain has a policy to temporarily avoid stocking the releases after the exclusive ends.
Alder continues, "It's very hard to explain to customers why you're not carrying a certain product because the artist only made it available to one retail .
"It reflects badly on the artists, too, because it shows a disregard for many fans who aren't able to get the product."
Cohl defends the exclusive nature of the Best Buy deal. "I sympathize with other retailers -- especially the smaller, independent ones -- but if we hadn't done this deal with Best Buy, we wouldn't have been able to keep the retail price of 'Four Flicks' as low as $29.99.
"If other retailers are dissatisfied with Best Buy's exclusive deals, I would tell those other retailers to get together and work something out so they can put their own unique offers on the table."
Earlier this year, Best Buy made an exclusive deal to carry the Eagles' "Hole in the World" single -- a combination DVD/CD package -- during its first month on sale.
And Best Buy has struck a similar arrangement with John Mellencamp for his DVD documentary, Billboard has learned. "Trouble No More: The Making of a John Mellencamp Album" will be released Oct. 28.
"Trouble No More," named after Mellencamp's latest Columbia Records album of the same name, will be released by Redline Entertainment. The one-hour documentary premiered Oct. 4 on entertainment channel Trio.
"It's a competitive world, and it takes a lot of energy and resources to make an impression on a customer," says Best Buy's Arnold, who cut the deals with the Stones and Mellencamp.
SPECIAL FEATURES
The first three discs of the Stones' "Four Flicks" set will include three concerts from the Licks world tour: Paris' Olympia Theater, New York's Madison Square Garden and London's Twickenham Stadium.
The fourth disc will have two previously unreleased documentaries: "Tip of the Tongue," which chronicles the band's preparation for the Licks tour, and "Licks Around the World," which takes a behind-the-scenes look at the tour in progress.
In addition, "Four Flicks" will have such special DVD features as band commentary, a custom set list and "Select-a-Stone" camera zooming capabilities.
Representatives for the Rolling Stones say that other countries will get the "Four Flicks" DVD set within two weeks of its Nov. 11 U.S./Canada release.
Reuters/Billboard
http://asia.reuters.com/newsArticle.jht ... ID=3597277
Best Buy's Stones Deal Irks Other Retailers
Sat October 11, 2003 09:15 AM ET
By Carla Hay
NEW YORK (Billboard) - It may be controversial and annoy the competition, but Best Buy's exclusive dealmaking with artists is here to stay -- and it's getting bigger.
Such privileged arrangements, however, may ignite an industry war if other retailers try to outdo each other to secure exclusive deals. Artists, meanwhile, risk losing potential sales when availability is limited to one retail chain.
The Minneapolis-based chain's most recent deal with the Rolling Stones will allow Best Buy to exclusively sell the band's new "Four Flicks" four-disc DVD set (to be released Nov. 11). The arrangement extends at least through the end of the year.
"We anticipate that 'Four Flicks' will be the best-selling music DVD in Best Buy history," says the chain's senior VP of entertainment, Gary Arnold.
BIGGER THAN BIG?
The Rolling Stones' "Four Flicks" has more than five hours of content, including previously unreleased concert footage.
To take top music-DVD sales honors, it would have to beat Atlantic Video's "Led Zeppelin DVD," which shattered music-video sales records during its first week.
"Led Zeppelin DVD" has sold more than 442,000 copies since its May 27 release, according to Nielsen SoundScan.
The Recording Industry Assn. of America has certified "Led Zeppelin DVD" as 10-times platinum, equaling shipments of more than 1 million copies. (A retail music video must ship 100,000 copies to be certified platinum by the RIAA.)
At least one retailer doubts that "Four Flicks" will match or surpass the Led Zeppelin DVD's sales.
"They may sell a lot of the 'Four Flicks' DVD, but not as it could if it were available everywhere," says Kathy Faust, head DVD buyer at Tower Video in downtown New York.
"There are a lot of people who don't live near a Best Buy store, and they can't or won't order the DVD online. All those fans will be left out because of this exclusive deal."
The exclusive Best Buy deal covers only the U.S. and Canada. Best Buy says it has nearly 700 stores in those countries, including Best Buy subsidiaries Future Shop, Geek Squad and Magnolia Hi-Fi.
Longtime Rolling Stones tour promoter Michael Cohl, who represented the Rolling Stones in the "Four Flicks"/Best Buy deal, says the Stones went to Best Buy because of its marketing clout.
"Music videos and music DVDs are often treated like a corner category at retail. But Best Buy had the best machine in place to get behind us and treat the release of 'Four Flicks' the way it deserves to be treated: like a major event."
"Four Flicks" will be released through TGA Entertainment, a multifaceted entertainment company that served as the tour promoter for the Rolling Stones' 2002-03 Licks world tour. Best Buy is selling "Four Flicks" at $29.99 -- a remarkably low price for a new four-disc DVD set.
'A DISSERVICE'
Still, with all the fanfare that Best Buy says it can deliver, other retailers remain unconvinced that exclusive retail deals will have a positive, long-term effect on the industry and consumers.
"Exclusive deals are a disservice to customers, because they result in disappointed customers who can't find the product anywhere else," says Dave Alder, Virgin Entertainment Group North America senior VP of product and marketing. "It's a short-sighted approach to marketing a new release."
To take a stand against exclusive deals, the Virgin retail chain has a policy to temporarily avoid stocking the releases after the exclusive ends.
Alder continues, "It's very hard to explain to customers why you're not carrying a certain product because the artist only made it available to one retail .
"It reflects badly on the artists, too, because it shows a disregard for many fans who aren't able to get the product."
Cohl defends the exclusive nature of the Best Buy deal. "I sympathize with other retailers -- especially the smaller, independent ones -- but if we hadn't done this deal with Best Buy, we wouldn't have been able to keep the retail price of 'Four Flicks' as low as $29.99.
"If other retailers are dissatisfied with Best Buy's exclusive deals, I would tell those other retailers to get together and work something out so they can put their own unique offers on the table."
Earlier this year, Best Buy made an exclusive deal to carry the Eagles' "Hole in the World" single -- a combination DVD/CD package -- during its first month on sale.
And Best Buy has struck a similar arrangement with John Mellencamp for his DVD documentary, Billboard has learned. "Trouble No More: The Making of a John Mellencamp Album" will be released Oct. 28.
"Trouble No More," named after Mellencamp's latest Columbia Records album of the same name, will be released by Redline Entertainment. The one-hour documentary premiered Oct. 4 on entertainment channel Trio.
"It's a competitive world, and it takes a lot of energy and resources to make an impression on a customer," says Best Buy's Arnold, who cut the deals with the Stones and Mellencamp.
SPECIAL FEATURES
The first three discs of the Stones' "Four Flicks" set will include three concerts from the Licks world tour: Paris' Olympia Theater, New York's Madison Square Garden and London's Twickenham Stadium.
The fourth disc will have two previously unreleased documentaries: "Tip of the Tongue," which chronicles the band's preparation for the Licks tour, and "Licks Around the World," which takes a behind-the-scenes look at the tour in progress.
In addition, "Four Flicks" will have such special DVD features as band commentary, a custom set list and "Select-a-Stone" camera zooming capabilities.
Representatives for the Rolling Stones say that other countries will get the "Four Flicks" DVD set within two weeks of its Nov. 11 U.S./Canada release.
Reuters/Billboard
http://asia.reuters.com/newsArticle.jht ... ID=3597277
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mikenycLI
- Posts: 526
- Joined: Mon May 26, 2003 2:02 pm
- Location: New York City Metropolitan Area, United States
They are actually, along with Circuit City, the new "Crazy Eddy", and do NOTHING to rid their smarmy little corner of the retail industry, of the stigma, of 20th Class Rip Off artists ! Still, compared to aluminum siding salesmen, they are the paragons of Virtue ! Like "Crazy Eddy", they are, literally, moments away from criminal indictments, LOTS of jail time, and, hopefully, extinction.
Get your bargains while you can...they ain't going to be around long.
How perfectly, they all dovetail, with the, ahem....quasi-legal business interests of the Music Industry, whose own infamous crime-ridden past, and current criminal enterprise, have been proven to exist, no matter how many charity drives they enroll in to cover up.
Get your bargains while you can...they ain't going to be around long.
How perfectly, they all dovetail, with the, ahem....quasi-legal business interests of the Music Industry, whose own infamous crime-ridden past, and current criminal enterprise, have been proven to exist, no matter how many charity drives they enroll in to cover up.