Prince to release 3 CD set for $11.98 through Target stores

[James Steele]

The music business just gets more and more interesting:

http://www.dcexaminer.com/ap/?c=y&id=1745142

Came across this story somewhat by accident. Following the footsteps of AC/DC, who from what I understand did a direct deal with Walmart, Prince (or artist formerly knows as, etc.) is going to release a 3 disc set directly through Target stores. 2 discs are Prince and one of the disc is for a new female artist he's pushing. But what is interesting to me is the price point of $11.98. I know he gets to cut out the record label I suppose, but I find this sort of discounting troubling. THREE disks for $12???

Granted... I don't purport to be an expert, but it seems major acts continue to cut their own deals based on short term expediency, but I am concerned that this may be helping devalue the perceived value of recorded music in the eyes of the consumer. What does this do to the indy artist trying to charge $10 for a single CD if Prince is selling CDs essentially for $4 each?

Again... I don't really know what to think of it, but hoping some of the smart people here might discuss and help me make sense of it.

[MIDI Life Crisis]

Well, while we're still waiting for the smart people to answer, I'll try a shot at it anyway

If the project cost him, say... $100k and Target agreed to put it on the shelves and then he sells, oh I don't know--- 3 million copies? and pockets about $3 profit from each copy, he's made $9M. Let's say he only sells a million copies, that's still $3M. And with his name it isn't likely he will sell much less than that. Heck, even if he sells 300k copies, he still makes a million bucks at my theoretical rate.

Essentially, he is leveraging his name to make a fast buck and who can blame him? The math works out once you remove the record labels. And if you can get distribution to a major retailer and have a brand that people already know and will surely buy - your golden.



Is that a flower at the end of that stem, or are you just making a profit?

[nk_e]

... I don't purport to be an expert, but it seems major acts continue to cut their own deals based on short term expediency, but I am concerned that this may be helping devalue the perceived value of recorded music in the eyes of the consumer. What does this do to the indy artist trying to charge $10 for a single CD if Prince is selling CDs essentially for $4 each?....

Um I think the perceived value is already compromised. There are a lot of things vying for the [teenage] consumer dollar and when you "run the numbers", CDs come up "short":

• For $9.99 I can get a DRM free digital version of a CD...
  For $13.99 I can get a physical CD with 72 minutes of music...
  For $13.99 - $18.99 I can get a DVD with several hours of video, special features, maybe a cheesy DVD game, previews, multiple languages, maybe multiple endings...
  For $9.99 - $39.99 I can get a PC game or game pack with hours of interactive entertainment...
  For the price of 10 - 15 CDs I can get Guitar Hero

I bet the Prince CDs all point to online stuff, merchandise, etc. It's the fish food leading them to spend elsewhere...

[James Steele]

Essentially, he is leveraging his name to make a fast buck and who can blame him? The math works out once you remove the record labels. And if you can get distribution to a major retailer and have a brand that people already know and will surely buy - your golden.

I figure that's true. Lower price means more volume for him. Higher price... perhaps lesser volume. He might even make the same money at the higher price. But it's funny that artists like prince have portrayed big, mean record labels as money-grubbing scum, but then some of these high profile artists are really no different. They're no different in that they're motivated simply by self-interest. I mean, seems people always said record labels don't give a damn about the greater artist community and how their actions affect it, but once these "caring, sensitive" major artists find themselves in the position of being a record label, they don't give a damn either.

I shouldn't be surprised, but I think major artists, once established, could give a rat's ass about the ramifications on the whole business so long as they get theirs. Arghhhhh. I'm finding it difficult to better articulate my feelings about this, but I think things like this, as well as the Radiohead "pay what you want" experiment, hurts all artists in the long run.

[James Steele]

Um I think the perceived value is already compromised. There are a lot of things vying for the [teenage] consumer dollar and when you "run the numbers", CDs come up "short":

• For $9.99 I can get a DRM free digital version of a CD...
  For $13.99 I can get a physical CD with 72 minutes of music...
  For $13.99 - $18.99 I can get a DVD with several hours of video, special features, maybe a cheesy DVD game, previews, multiple languages, maybe multiple endings...
  For $9.99 - $39.99 I can get a PC game or game pack with hours of interactive entertainment...
  For the price of 10 - 15 CDs I can get Guitar Hero

I bet the Prince CDs all point to online stuff, merchandise, etc. It's the fish food leading them to spend elsewhere...

That's an interesting post. What about this? What about an smaller indy artist that is already writing off the teenage audience and targeting an older demographic-- one that is actually perhaps still purchasing CDs. Prince's audience is probably made up more of these folks, since he's had a long career spanning three decades. I guess I'm just saying that when Prince dumps a 3 CD set on the market for $12, he may be making it a even tougher sale for the indy artist trying to sell a CD for $10... leaving out the teenager demographic. But then, as I said, I don't think he cares, he's just hitting the "reload" button and watching his bank account balance skyrocket.

I don't know. Believe me, I'm not trying to be "protectionist" here and I support the free market in concept, but there's something going on here that feels viscerally bad. And yeah... wouldn't surprise me if it's enhance and drives traffic to his official merchandise sites, etc. etc. etc.

[MIDI Life Crisis]

Then again, I don't even go into a Target or a Walmart for ANYTHING. EVER. Guess I won't be picking up the new Price (I mean Prince) CD.

[Jim]

Seems to me he's devaluing his own work. It must only be worth 1/3 of the regular price, eh?

So, what did he skimp on? Does it have 2/3 less Funk? 2/3 fewer double entendres? Less than one entendre per song?

I've thought of him as an OK artist. Never felt compelled to buy any of his work before. I don't think discount pricing is going to move people like me. This is likely compelling for his core fans. He's probably giving in to increased competition for product, addressing the decline in CD sales, and recognizing we're on the cusp of a depression.

[MIDI Life Crisis]

Seems to me he's devaluing his own work. It must only be worth 1/3 of the regular price, eh?

So, what did he skimp on? Does it have 2/3 less Funk? 2/3 fewer double entendres? Less than one entendre per song?

I've thought of him as an OK artist. Never felt compelled to buy any of his work before. I don't think discount pricing is going to move people like me. This is likely compelling for his core fans. He's probably giving in to increased competition for product, addressing the decline in CD sales, and recognizing we're on the cusp of a depression.

I still wondering how he's going to fit his name on the cover:

Prince, the artist formerly known as: "the artist formerly known as Prince."

[Jim]

I still wondering how he's going to fit his name on the cover:

Prince, the artist formerly known as: "the artist formerly known as Prince."

You just gotta' know at some point, he'll return to being simply "Rogers Nelson." Probably about the same time he gets a paunch and starts playing Country music.

[James Steele]

I remember as a kid first seeing him on Don Kirschner's Rock Concert on TV. You'll forgive me, but at first I wasn't sure he was a "he." In the first incarnation I remember, he looked a bit like Diana Ross with a whispy mustache. But hey... I guess he's pretty rich. I hear he has some big studio complex/offices in Minneapolis or something? I seem to recall he's based there. So is Jimmy Jam, I think too.

[MIDI Life Crisis]

... he looked a bit like Diana Ross with a whispy mustache.

Damn! His secret is out!


How did we get here...?

[James Steele]

"Run away! Run away!"

(That is one foul-tempered rodent!)

Geez... I LOVE that movie!

[mikehalloran]

Maybe he's charging what they're worth?

(rimshot)

OK, cheap shot, I know but I just couldn't resist.