A haunting refrain
MUSIC CHANNEL GUIDE: As music DVD slows, labels and stores fine-tune tactics
By Chris Gennusa -- Video Business, 6/1/2009
JUNE 1 | MUSIC CHANNEL GUIDE: In these tough times, it is imperative that retailers know who their consumers are, National Assn. of Recording Merchandisers president Jim Donio says, on the eve of NARM’s annual convention, held June 7-10 in San Diego. “The retailers that have diversified, the ones that have tried to exploit what is unique or special, they have been the ones that have not just survived, but thrived,” he says.
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Buchalter notes that Image had 600 titles in its music DVD catalog at one time, but that has shrunk to 400 to 500, including several dozen music Blu-ray titles.
Though digital music sales are growing exponentially, they represent a much smaller dollar figure than physical formats, which are not growing.
“We hope to remain flat for 2009,” says one veteran retail merchandiser. “In 2008, we had a big year for DVD music. This year, we’re down 30% to 40% so far.”
Remaining flat would be a plus for retailers that sell both music and video, given that many are seeing stores closing. Virgin Megastores will shutter all six U.S. locations this year.
“Circuit City was a big loss for us,” says Mike Carden, president of music DVD supplier Eagle Rock Entertainment. “Indie retailers still do a good deal of business, but they don’t have the budgets to get behind product like Wal-Mart, Best Buy and Trans World. The good news is that Amazon [and other e-tailers] fill those gaps.”
Fewer retailers, of course, means less shelf space. This worries Carden. “Nothing compares to having new product face out in front of the consumer,” he says. “You’ve got to see it to buy it.” Eagle Rock boasts some 500 music DVD titles, including several dozen on Blu-ray, such as the recently released Jeff Beck: Performing This Week on both formats.
Retailers are using various means to make music video titles stand out. “Our music DVDs are now right above the CDs,” says Jennifer Harris, Best Buy media supervisor at the chain’s West Hollywood, Calif., location. “They’re selling much better that way instead of in their own section. That has been [a big] difference.”
Target is among retailers that use special content to increase foot traffic. “We want to provide consumers with exclusive content and a great deal,” a Target spokesman says.
Some independent music retailers are less upbeat. “DVD sales for the last few months have been in decline for us,” and Blu-ray has made little impact, says Michael Bunnell, owner of Boise, Idaho’s Record Exchange, which carries some 70,000 CDs and DVDs.
E1 Entertainment video VP Dan Gurlitz points out that Blu-ray’s market share should increase over time, however. “As Blu-ray hardware penetrates further, that economy will change,” he says.
