Does a Weak Music Mkt. Open the Doors for MJ?

mello1

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A story by Reuters reports a terrible sales season for music in 2007, particularly during the holiday season. Chuck D, formally of Public Enemy has a business plan that he would implement if he is given the head reins at Def Jam, a position recently vacated by Jay-Z (Jermaine Dupree is rumored to be named the new head), that would involve embracing digital technology.

During the late '70s and early '80s, a similar situation existed when disco peetered out, making the timing ripe for that one break thru performer and that person was Michael Jackson.

Can MJ do it again in '08?

Music business ends year on another weak note

sourceReuters2.gif

updated 6:34 p.m. PT, Fri., Dec. 28, 2007

NEW YORK (Billboard) - Just when it seemed erosion of music sales during the holiday season couldn't get worse, December snowstorms compounded the retail industry's misery.

Album sales for 2007 are now down 15.3% for the year, compared with 2006. But for the four weeks beginning with Thanksgiving week and ending December 26, U.S. album sales were down 20% to 84.2 million units from 105.3 million a year ago, according to Nielsen SoundScan.

The last week before Christmas didn't help matters much, with sales totaling 25.6 million vs. 31.3 million units in the same period last year.


The season got off on the wrong foot when Thanksgiving sales failed to ignite due to a lack of new hit titles, with retailers reporting anywhere from 5% to 15% comparable-store declines. And then Mother Nature blew in.

"It just makes things worse in one of those already bad holiday selling seasons," says Rob Perkins, president of Marietta, Ga., chain Value Music.
Snowstorms are to be expected at this time of the year, but a December 5 shooting in an Omaha mall "led everybody into a malaise for about a week," says Mike Fratt, who heads up the six-unit, Omaha, Neb.-based Homers chain.

In Brighton, Mass., Newbury Comics CEO Mike Dreese says sales were down 80% on December 16 -- a decline he attributes to snow and a New England Patriots game keeping people home.

Beyond the weather, a lack of big hits is grated on retailers' nerves. "I was astounded: There was no CD to give as a gift," Dreese says. "I have never seen that before."

The formula for holiday selling success is a plethora of obvious hit titles and a couple of surprise hits, and this year retailers have had few of the former to rely on. But at least one title has far exceeded expectations: Since its October 9 release, Josh Groban's Christmas album "Noel" has sold 3.6 million copies, according to Nielsen SoundScan; it is now the top-selling album of the year.

Indie retail chains are also citing Lupe Fiasco's "The Cool," Robert Plant & Alison Krauss' "Raising Sand" and Mindy Smith's "My Holiday" as strong sellers. And Fratt reports that Homers has sold "a ridiculous amount" of the Eagles' "Long Road out of Eden" and the Tom Petty "Runnin' Down a Dream" DVD, which, respectively, are exclusives at Wal-Mart and Best Buy.

Eric Levin, who owns the Criminal Records indie store in Atlanta, says this year's dearth of hit titles inspired the chain to move its usual January sale on its top 100 titles up to December 1. That change, he says, has helped the chain increase sales by 8% so far in December.

One bright spot across the board, retailers and wholesalers say, has been online physical sales. Dreese says December will be Newbury Comics' first $1 million month for its Web store.

DVD sales, meanwhile, were flat, though retailers had expected them to be up slightly. And while videogames had a decent December, merchants say, sales could have been better if enough Wii game systems or "Guitar Hero" games had been available.

But for music, retailers say, the message is clear. "Unless we get some innovation put into physical music," Value Music's Perkins says, "we will see a continuing of this bad sales trend."

Indeed, senior executives at two of the major labels say they are forecasting a similar drop in CD sales for 2008. The decline could be accelerated by a continued reduction of shelf space devoted to music. Retail executives say they are unsure how poor sales will affect such matters in 2008, but 2007 saw a number of chains reduce music space to expand other product lines.
Chuck!.jpg


Chuck D Makes Bid for Def Jam President

As Jay-Z vacates his post as Def Jam president, another Def Jam legend is vying for the high-level music industry position.

Chuck D of iconic group Public Enemy says he is the person for the job.
"After 10 years looking on the collapsing of the record industry, and upon hearing the news of Jay-Z stepping down from Def Jam, I would throw my name into the hat of somebody who understands how the hell Universal should establish the name-brands they acquire with stockholders money," Chuck D told AllHipHop.com.

Chuck D, real name Carlton Douglas Ridenhour, recorded under the Def Jam banner from 1987 to 1998 and churned out some of the label's biggest hits as the lead rapper of Public Enemy.

The rapper has always been a proponent of the internet and launched Rapstation.com in 1999 to offer readers free MP3 downloads and even downloadable ringtones, among other progressive elements.

Chuck D, who also runs his own Slam Jamz label, said that running Def Jam is a more viable option than tossing his hat into the political arena.

"So instead of me running for politics, this is an easier run into the world of influential culture," he continued. "I'm in Los Angeles, Atlanta and New York on the regular as well as I [thoroughly understand] the international picture," Chuck said. "There would be some seismic changes, and I would be a little Huey Long-ish at it. If folks are clueless about this parallel that's precisely the problem." [Editor's note: Huey P. Long was a Great Depression-era politician that was hugely popular and successful. He was killed shortly after announcing a bid for the presidency.]

Chuck D also said that Jay-Z didn't quite have time to grow as the CEO, but cited what has been speculated that he'll be with Def Jam co-founder Rick Rubin at Sony Records.

"I think a person like Jay-Z needed a bit more time, but I could imagine his corporate limitations, and he's gonna be working alongside a true music cat R.R. [Rick Rubin] to do his thing."

The music business' chief concern these days is monetary return and Chuck D, who is renowned for his political and social consciousness, said he could generate revenue as well.

"I'd show them how to make a profit, if they care. I will bring the noise. It will be interesting to hear the requirements here [for the job]," he concluded.
No successor to Jay-Z has been named at Def Jam and there is speculation as to who will become the next president of the legendary label.

Jermaine Dupri, Jimmy "Henchmen" Rosemond and Damon Dash have all been mentioned as potential candidates for the position.

Chuck D outlined his plan for Def Jam, as seen below:

1) Being ahead of the technology curve; preparing for a thinned out industry; and managing budget efficient acts is very noteworthy of my resume which is simple. I told these cats the online revolution was coming and they needed big adjustments. They relied on lawyers, courts, and accountants only to now look upward at Apple, etc.

2) Their cost factors didn't fit the times, I come from a world where the $50,000 investments resulted into 6 - 7 figures. Now it's a business where 7 figures are invested to make 6.

3) I would run it like sports. These artists would be busting their tails on tour and on the stage to gain a fan. They would be coached on how to do their thing right. Braintrust will be high, and subcontracting to the right contributors will be comparable of the efficiency of these labels like Jazz and catalog departments. You cannot have people working, that haven't the slightest clue of what they are in the middle of.

4) Any criminal mindedness in artistry, and management would have sit this one out, go their own way. It's like bad apples the long run ain't got nothing to do with entertainment. You can't mix the stage and off stage parodies.

*******************

We have had this conversation before when the interview with Will.I.AM was first release with him talking to MJ about making his next major new project a digital release -- fore going the traditional record company route altogether. Madonna's 100 million deal seems to reflect a changing reality in the music business.

Will Michael revolutionize the industry once again with marketing his future works with the full embrace of digital technology? What are your thoughts?
 
yes its good. A weak market will make a strong album stand out. However, the worse the market is the less money labels have to support great albums.
 
The music industry has been slowing going down hill ever since Michael was messed with in 1993. And the way the media piled up on top of him made it hard for him to get things back in order.

I hope they all have learned their lesson. The BS they took him through was not worth it in the long run.

Is the time ripe for Michael? Yes it is. And maybe this time, they will make everyone leave him alone.
 
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Interesting topic Mello! :)

I think thet YES, this is a good time for Michael, a good time for him to launch his album and be listened, insetead of being mocked. They are too desprate to even try to mock Michael Jackson, the man who could save the yearly sales. Or more, the man who can find an innovative sollution for their problems.
 
very interesting topic.
I won't be surprised if MJ does something with his new album/project that will be revolutionary in the industry. I think MJ is always looking for better/more inventive ways for his music be it Video, sound etc. But I am not sure that a complete digital release will be great way for his new album/project because MJ has fans as far away as India, Africa etc. He is such a global artist that Digital release only, may limit/isolate some fans.

As for low sales in the music industry, I think that it will make it easier for the project to get to the top. But may result in longer promotion campaigns to get the millions of sells in the long run.
 
I think that given what passes for music these days Michael's music will be welcomed with open arms whatever people think of him personally they cannot ignore the fact that he is the most talented person on earth.

I think he will reach a whole new audience of fans who were not born when he was at his peak. The music business needs him, and maybe peace has broken out between him and Sony because they know he still has the potential to outsell anyone else out there. Even the arrogent Cowell has stopped making sarcastic comments when Michael's name is mentioned and he is a big shot with Sony BMG so maybe they have admitted defeat in trying to bury Michael.
 
I think that if they will try dual discs - one side single/remix/acapella other one the video + a short surprise, at a decent price, this crisis can be kept in control at least for 3 years.

I've always thought that waiting for videos, to have them all it's kinda frustrating.... you need to wait all the singles from an album to be released, in order to, maybe, get a dvd with them all. Why not deliver strongly even from the start? Relase singles as a dual disc is fresh blood on an intensive care patient.
 
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Michael will use the NEWEST ideas when it comes to ways for people to get music, but you better believe that he will ALSO be releasing his album on the "old fassion" lol! CD..
 
Of course I don't thing he will totally cut the ties with cd format. All his albums, inclusede Invincible were released on cassets. ( I bought some of his albums both on cd and cassets, so I know LOL )
 
its good for mj interms of the sales being so poor and yes it gives him an oppotunity to what he did with thriller interms of revitalising the industry when it was in a dump.but then it depends on the backing mj has. industry in the dumps labels arent gonna spend the money they once did on videos etc. interms of doing now things re online etc then no i dont think so. the problem is there has been no decent music in a long time put out great innovative music then it will sell regardless of downloads etc.
 
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What exactly does it mean to release an album DIGITALLY? Does this push the CD away?
It means that you would have to download the product via a computer or wireless device (i.e. phone).

To be honest, yes, it can push the CD away, but it's on its way out as it is anyway. Anyone who buys a new phone can download music, and when the price drops on the iPhone and other like products, the CDs will be so done.

The time is coming and I think that MJ knows this and he is going to position himself to be on the cutting edge. You know that he has no love lost for $ony and what they put him thru. I think that he is going to seek out other opportunities to market his talent and I say more power to him....

I think that is why $ony is pushing the hell out of Thriller 25. Because unless MJ/$ony agrees to another recording contract, this is it for them. MJ is gonna get the masters for his $ony work and it's buh-bye. MJ knows that he can announce a world tour anytime he wants and the world will respond and he will make $$$$$$$$$$.

He's taking control over his image, vs. other unscrupulous gremlins who tried to steal 'him' and he will then control his own destiny.

The number one thing is that he will put out music that the world can depend on because they know it will be of very high quality and that is what keeps him in the game, along with his massive, worldwide fanbase unmatched by few to none.:D
 
very interesting topic.
I won't be surprised if MJ does something with his new album/project that will be revolutionary in the industry. I think MJ is always looking for better/more inventive ways for his music be it Video, sound etc. But I am not sure that a complete digital release will be great way for his new album/project because MJ has fans as far away as India, Africa etc. He is such a global artist that Digital release only, may limit/isolate some fans.

As for low sales in the music industry, I think that it will make it easier for the project to get to the top. But may result in longer promotion campaigns to get the millions of sells in the long run.
Even in India and Africa, they have technical capabilities. And trust that if someone wants his music badly enough, they will get it on whatever format it is offered.
 
I think that if they will try dual discs - one side single/remix/acapella other one the video + a short surprise, at a decent price, this crisis can be kept in control at least for 3 years.

I've always thought that waiting for videos, to have them all it's kinda frustrating.... you need to wait all the singles from an album to be released, in order to, maybe, get a dvd with them all. Why not deliver strongly even from the start? Relase singles as a dual disc is fresh blood on an intensive care patient.
Ooh, I do like that idea and I thought about that once as doing something completely different. A video for EVERY SONG on a project.

Hell, make it a MOVIE. Forget 'short film' -- make it a 'long version film' with many parts. Tell a complete story with the CD package....

Oh yes, I like this! :D
 
Yeah, what Tipareth said is a GREAT idea! And the music industry really does need to drop the price of CD's. They are too expensive. Most kids cannot afford them and kids are the main ones that like to buy music. The music industry is making it impossible for them to do so. They can't even save up their lunch money to buy a new CD. They would have to go without lunch for a couple of weeks, and they are not going to do that.

Lower the price, Music Industry. It's really as simple as that. Then, gradually switch the masses over to digital.

The music industry shot itself in the foot when it spiked the price of music.
 
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Glad that you've found the idea of dual discs full of goodies lovelly! :)
I don't know why those heads of industry are not jumping on this opportunity! It will help a lot. They seem to luck imagination, seriouslly..... I really do not understand why - at least concerning Michael - they keep on wanting to release different singles for Europe and US, with different release dates, this is hella confusing! A lot of resources spent just becuase their fear of being BOLD and IMAGINATIVE. ^_^


......


I am so frustrated now. I've just tried and I cannot download from Amazon and from Itunes, Romania is not on the list. We do not have our sites with similar services so....:-(

It would be quite catastrophic to push aside cds. Entire countries/ areas will be left out. First prepare the netsites to be open globally and only then make the final switch!
 
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it will be a long long time imo before there is no music released on cds etc.
 
To be honest, yes, it can push the CD away, but it's on its way out as it is anyway. Anyone who buys a new phone can download music, and when the price drops on the iPhone and other like products, the CDs will be so done.

And just think......it was the CD....created by Sony.....that put the music industry in this predicament in the first place! CDs gave people the tool to download music in mass. And as far as I know....you can't transfer music from one person's ipod to another person's ipod.....right? In other words, unlike the cd which can be mass copied from a single download session and sold to others, you can't do that with an ipod. So if I were to have mercy on the record labels (which I don't), I would encourage them to do away with the CD all together. The CD was their curse!


Even in India and Africa, they have technical capabilities. And trust that if someone wants his music badly enough, they will get it on whatever format it is offered.

But you know what?....Michael doesn't have to release digitally in these other countries. After all, America is where most of the damage is done anyway. America is where the numbers are count. Do digital in the US and CD is other more underprivileged countries.
 
And just think......it was the CD....created by Sony.....that put the music industry in this predicament in the first place! CDs gave people the tool to download music in mass. And as far as I know....you can't transfer music from one person's ipod to another person's ipod.....right? In other words, unlike the cd which can be mass copied from a single download session and sold to others, you can't do that with an ipod. So if I were to have mercy on the record labels (which I don't), I would encourage them to do away with the CD all together. The CD was their curse!




But you know what?....Michael doesn't have to release digitally in these other countries. After all, America is where most of the damage is done anyway. America is where the numbers are count. Do digital in the US and CD is other more underprivileged countries.

Americans can still buy CDs too. :lol: Just release quality work and lower the prices. ;)
 
If digital is the way forward then Michael won't miss out on that, but personally, I still want the cd so I can listen on my big speakers wherever I am in the house. I also still want the DVD so I can sit and watch the whole thing uninterupted, besides I don't have an ipod and will probably never own one.
 
Well how about that only those people who would own a cd single could somehow ALSO download a song for their mp3 device like ipod.. So if every cd single had kind code to do that.. And then if you could use one code only from one ip address.. Could it be possible? And how would they count sales then, imagine if the price was technicalle split for cd and mp3 when buying the cd, if it was said to be for those both, shouldn't then also digital sales count for digital charts..?
 
give me downloads in an uncompressed format... and then it will get taken seriously, IMO.

I wanna listen to the best at the best possible quality.
 
give me downloads in an uncompressed format... and then it will get taken seriously, IMO.

I wanna listen to the best at the best possible quality.

Exactelly!

What I usually do with my cds? Convert the songs both in wave format and mp3 format. Waves I put them on dvds and whenever I want I can burn an audio cd of high quality, or I can listen to them on a mp3 wave portable with high capacity. Mp3 are for common use - computer, law capacity portables.
 
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