Lost in the controversy

Written by Dan Nied
Published December 11, 2003
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But the recording companies are going to come out of this all right. When they switch a release date, they’re not the ones with scores of Rage Against the Machine albums that are essentially dead stock. (What, you didn’t hear that Rage’s greatest hits were out already? Neither did anyone else.) Not only that, but retailers don’t have the time to drastically alter the schedule or floor plan to suddenly put FRIDAY new releases on display. So far, the only two CDs that haven’t tanked because of switcheroo release dates are Jay-Z and Korn.

Not only are the record companies weathering this storm, so are the retail giants like Wal-mart and Best Buy. Ladies and gents, let’s clear one thing up. These companies have massive buying power, and they don’t care if a CD tanks. To them, CDs are accessories. They’re reasons to get you to come in the store. They aren’t meant to be the main sources of revenue. That’s why they can sell a CD for less than we (your friendly neighborhood music outlet) PAY for it.

Which leaves the music retailers to take the brunt of the damage for the downloading explosion. What do we do about it? Well, our administrative handlers find ways to increase sales through add-ons and rewards! (Enthusiasm definitely insincere). Remember the only two ways to increase sales? We can’t combat the downloading, we can’t combat the prices of the giants, we can’t communicate with the record labels so we really can’t increase customers. That leaves selling more stuff!

And yes, I know it annoys you when a retail employee offers you stuff. Unfortunately, it’s no longer a thing we do for repeat customers. We need everybody to be repeat customers, and we need to get away from only selling music.

But, wait! We’re a music store? How can we say that?

Well, that’s the effect of music downloading on the retail industry.

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Dan Nied is a journalist, of sorts, living near San Francisco. He is a college graduate, but you wouldn't know it by looking at his bank statement.
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Lost in the controversy
Published: December 11, 2003
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Section: Sci/Tech
Filed Under: Culture: Media, Sci/Tech: Internet, Music: News
Writer: Dan Nied
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#1 — December 11, 2003 @ 07:17AM — Al Barger [URL]

Ken, don't take this the wrong way cause I'm sure you're a great fellow, but I don't care one whit if music retailers big, small or medium get squeezed out of the game. Y'all are just middlemen- and increasingly seem expendable. Trying to get the economics of the business in order, retailers and wholesalers seem like the first obvious places to squeeze.

The whole game is changing in a thousand ways, and everybody along the chain needs to justify their continuing cut. Bigger chains can work cheaper and more efficiently. They don't have to make much on music software, and they subsume a lot of the overhead as part of the larger store.

The smaller stores may tend to lose their reasons for being. They can't compete with prices, or even with selection. They certainly can't compete against Amazon for selection.

One traditional advantage of small stores might theoretically be getting more knowledgeable sales staff that might turn you on to cool stuff that you wouldn't otherwise know about. That was a nice idea.

It's largely irrelevant now, though. There are SO many more ways to hear about music, starting with but not limited to the internet. Again, just the automated recommendations and customer reviews sections at Amazon do me a hell of a lot more good in finding new music than anybody working at record stores ever has.

Then of course there is Blogcritics, which is where most cool people go for the skinny on the best records, books and video.

Other than to buy a concert ticket, I haven't been in a stand alone music retail store more than a time or two in several years now. I get more selection, cheaper prices and better information elsewhere.

Why exactly is it that we should give retail music stores our money, exactly?

#2 — December 11, 2003 @ 07:57AM — jadester

slightly left-of-centre on this topic but:
i do wish the record companies, or whoever is responsible for this, would take heed of the fact that releasing new albums with a bonus DVD at no extra cost/£1 extra is definitely the way to go, especially if said cd contains at least two music videos (any other content can be anything). Whilst i probably would have bought them anyway in the end, i now have two CDs bought over the past year that are the "spcial edition" ones with a bonus DVD. It's just that little bit extra, which also means i don't have to go over to Kazaa or similar if i want to get said music video.
Also, when it comes to music DVDs, bands should *really* take a leaf out of Tenacious D's book - their "The Complete Masterworks" DVD is TWO discs for £12.99 from amazon. Talk about vfm...

#3 — December 11, 2003 @ 08:21AM — Eric Olsen

I love small retailers and have talked about those who are remaining successful by finding niche markets. It seems to me that most of these issues apply whether online music is legit or illegit, and with the labels finally getting into the legit game, I'm not sure what the alternatives are other to become in essence a recommendation service that people trust, and to push the used stuff.

#4 — December 11, 2003 @ 08:40AM — Craig Lyndall [URL]

That's exactly what Al said. They need to prove their worth in the chain and they can't do it on price or selection most of the time. I guess I still love my local record store, but it must not be enough, because I have fallen in love with buying CD's on the secondary market like half.com and amazon marketplace. I always try and buy used stuff in good shape. Occasionally I get burned but I have saved so much money buying 5-7 dollar CD's that someone else doesn't want anymore that I can't justify going to the local indie shop anymore.

Even if the owner is a super cool guy who talks to me about music it is hard to justify. Maybe I should split the difference and buy a couple discs a month from him, but it is so great to just rock through a website, rack up 5 discs in my virtual shopping cart, see that I just averaged $10 per disc INCLUDING SHIPPING and have them trickle into my mail for the next couple of weeks. It's like buying year round Christmas.

#5 — December 11, 2003 @ 09:07AM — Eric Olsen

C, I would say it was "approximately" what Al said. iwould still much rather go to a physical store for used CDs because then I can see what I'm getting, plus used stores usually have SUPER MOFO CHEAP sections for a dollar or less and I always find things there and can gauge the condition for myself, etc. So I would say there IS a place for a physical store, but not in the long run for new releases.

#6 — December 11, 2003 @ 09:14AM — Craig Lyndall [URL]

That's fair. I will admit that I love the bargain bin or red sticker section at CD Game Exchange. I just think in the long run, the secondary market is much more efficient online and the price discrepancy will be pretty great. Or maybe I am one of the few who can deal with getting burned occasionally.

#7 — December 11, 2003 @ 10:28AM — Tom Johnson [URL]

Nothing, absolutely nothing, beats spending an hour slowly scanning the shelves for intriguing things. That's where the online retailers will never succeed. A lot of times I find things just by doing my slow walk up and down the aisles that I would not have remembered to specifically look for. That said, I've had to curtail my buying of *new* CDs at the local indies because their prices have gone through the roof. I understand their problem, but I've got a budget too. Adding $3 to the price of a CD will drive me out the door and down to Best Buy, I'm sorry to say. And I'm usually willing to wait a week for a shipment to arrive if I can save even more online. The biggest problem I'm finding is that instead of stocking more unusual titles, the indies are stocking more and more very commercial artists (at higher prices than anyone else) at the expense of less commercial stuff and I'm FORCED to resort to online purchases. If you won't stock it, it can't possibly sell, can it? And if you price those big commercial releases at $5 more than Best Buy, you're not going to sell those either. What's more, they usually have a list of top-20 sellers and they're usually less well-known artists. Hello?! Stock that stuff more than the big commercial releases - that's what your buyers want! When they've got 40 copies of the latest Britney Spears and they sell out of the only 2 copies they ordered of the new Death Cab For Cutie on the first day it's out, they can't blame customers for going to other stores to get that DCFC album. Panicking about lost sales and overstocking only big name artists is a dead-end - and it's exactly why I rarely buy new CDs at these stores. It's a real shame when I can find indie releases at Best Buy, of all places, but not at the local indie music store.

#8 — December 11, 2003 @ 10:36AM — Mark Saleski [URL]

yea, nothing will ever compete with a good record store. sadly, there aren't too many of them left. in the boston area, Newbury Comics used to be pretty good...but they've gone downhill in the last three years or so (and they were never good at jazz).

#9 — April 30, 2004 @ 03:36AM — Kevin [URL]

WOW!!!! This is a great website

#10 — April 30, 2004 @ 09:22AM — Eric Olsen

Kevin, please stop spamming our site with your inane ejaculations and tell your "best friends" to do the same. You are all idiots.

#11 — April 30, 2004 @ 14:47PM — Smenkharon

I haven't found amazon.com to be all that helpful with finding underground music. A CD I bought three weeks ago right at the import release date at one of the many great independant music retailers in Vancouver, B.C. is still nowhere to be seen on Amazon. As a lover of music and the entire package of art and info contained in a CD, I want to get my music first, and in it's entirety. I don't want to wait for an album that I have heard to be delivered to me, I want it in my hand right after I preview it in the store or the next day after a friend plays it for me or whatever. Downloading music is like reading a book online, personally I prefer to hold something and feel that it is a part of my life. My few burnt or downloaded CD's rarely get listened to, and I am reluctant to mix them in with the rest of my collection due to their unpleasing asthetics. Also I have many CD's that I have had signed by the artists at a live show, can you imagine asking an artist to sign the blank jewel case from your burnt CD! Major chain stores will only get my money if I'm buying something off of a major label, and then I feel good buying at less than cost and leaving without any of their other crap. The selection at independent stores, at least in the city I live in, is still far superior to anything I have seen online, and I for one will continue to support music retailers who are in it for the love of the art.

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