We make tons of these things a week and we get asked this questions all the time, well not all of the time every now and then, so i thought it would be great to show you how its done. While i am here, check out the new Fear Factory record - We just finished it - can i hear you say AWESOME!

The following outlets (not all inclusive) report to SoundScan :

•Amazon
•Wal-Mart
•Best Buy
•Target
•Barnes and Noble
•Borders
•K-Mart
•Meijers
•Sam Goody’s
•Fred Meyers
•Most major chain stores with music
departments.

The following outlets don’t report sales to SoundScan:

•Most warehouse clubs (Costco, BJ’s, etc)
•Drug stores and supermarkets (except for Walgreens)
•Many independent record stores can’t report unless they have an electronic sales system
•Record clubs
•Hallmark stores”

On my travels i saw this about Walmart - My questions to all of you are - what do you think this will do to the industry?

Wal-Mart Wants $10 CDs
- Biggest U.S. record retailer battles record labels over prices.

Wal-mart wants every CD you buy to cost less than ten bucks. And the nation’s largest retailer — which moved a quarter of a trillion dollars’ worth of goods last year — usually gets its way. Suppliers who don’t accede to Wal-Mart’s “everyday low price” mantra often find their products bounced from the chain’s stores, excluded from being sold to the 138 million people who shop at a Wal-Mart store every week.

In the past decade, Wal-Mart has quietly emerged as the nation’s biggest record store. Wal-Mart now sells an estimated one out of every five major-label albums. It has so much power, industry insiders say, that what it chooses to stock can basically determine what becomes a hit. “If you don’t have a Wal-Mart account, you probably won’t have a major pop artist,” says one label executive.

Along with other giant retailers such as Best Buy and Target, Wal-Mart willingly loses money selling CDs for less than $10 (they buy most hit CDs from distributors for around $12). These companies use bargain CDs to lure consumers to the store, hoping they might also grab a boombox or a DVD player while checking out the music deals.

Less-expensive CDs are something consumers have been demanding for years. But here’s the hitch: Wal-Mart is tired of losing money on cheap CDs. It wants to keep selling them for less than $10 — $9.72, to be exact — but it wants the record industry to lower the prices at which it purchases them. Last winter, Wal-Mart asked the industry to supply it with choice albums — from new releases from alternative rockers the Killers to perennial classics such as Beatles 1 — at favorable prices. According to music-industry sources, Wal-Mart executives hinted that they could reduce Wal-Mart’s CD stock and replace it with more lucrative DVDs and video games.

“This wasn’t framed as a gentle negotiation,” says one label rep. “It’s a line in the sand — you don’t do this, then the threat is this.” (Wal-Mart denies these claims.) As a result, all of the major labels agreed to supply some popular albums to Wal-Mart’s $9.72 program. “We’re in such a competitive world, and you can’t reach consumers if you’re not in Wal-Mart,” admits another label executive.

Tensions are not as high now as they were last winter, but making sure Wal-Mart is happy remains one of the music industry’s major priorities. That’s because if Wal-Mart cut back on music, industry sales would suffer severely — though Wal-Mart’s shareholders would barely bat an eye. While Wal-Mart represents nearly twenty percent of major-label music sales, music represents only about two percent of Wal-Mart’s total sales. “If they got out of selling music, it would mean nothing to them,” says another label executive. “This keeps me awake at night.”

Wal-Mart would not directly comment on tensions with the labels, but Gary Severson, Wal-Mart’s senior vice president and general merchandise manager in charge of the chain’s entertainment section, did allude to the dispute about music prices. “The labels price things based on what they believe they can get — a pricing philosophy a lot of industries have,” he says. “But we like to price things as cheaply as we possibly can, rather than charge as much as we can get. It’s a big difference in philosophy, and we try to help other people see that.” Virtually no industry executives would publicly comment about their company’s relationship with Wal-Mart. But off the record, many record-industry executives shared their concerns. “I don’t think there is a music supplier in America who really enjoys doing business with Wal-Mart,” says one major-label rep.

No one in the music business ever expected Wal-Mart to become the most powerful force in record retailing. In the past, the business was shared among smaller local and regional chains such as Musicland, which once had an estimated ten percent of the market. But as Wal-Mart and other national discount operations such as Target and Best Buy have grown — approximately half of all major-label music is sold through these three — an estimated 1,200 record stores have closed in the past two years, according to market-research firm Almighty Institute of Music Retail. Last February, Tower Records, with ninety-three stores, declared bankruptcy and is now up for sale; Musicland has already changed owners, with many local outposts shuttered.

Wal-Mart is like no traditional record seller. Unlike a typical Tower store, which stocks 60,000 titles, an average Wal-Mart carries about 5,000 CDs. That leaves little room on the shelf for developing artists or independent labels. There’s also scant space for catalog albums, which now represent about forty percent of all sales. At a Wal-Mart Supercenter in Thorton, Colorado, for example, there were no copies of the Rolling Stones’ Exile on Main Street or Nirvana’s Nevermind. While most of the latest hits were priced at $13.88, some records — from the O Brother, Where Art Thou? soundtrack to the latest by Yellowcard — were displayed for $9.72. Says Severson, “Paying fifteen dollars for a piece of music is a difficult value equation for customers.”

For the music industry, having such a dominant retailer is like being stuck in a bad marriage. Whereas traditional music retailers took advertising money from the labels to push new releases in Sunday newspaper circulars, Wal-Mart barely advertises locally. It relies on national campaigns, where it promotes its own low-price policy. “Wal-Mart has no long-term care for an individual artist or marketing plan, unlike the specialty stores, which were a real business partner,” says one former distribution executive. “At Wal-Mart, we’re a commodity and have to fight for shelf space like Colgate fights for shelf space.”

In the same way that Wal-Mart made it difficult for local mom-and-pop retailers to compete with its low prices, it has hurt smaller music stores. “When you’re buying CDs for twelve dollars and selling them for ten like Wal-Mart, it makes the rest of us look like we’re gouging the customer, when we’re not,” says Don Van Cleave, head of the Coalition for Independent Music Stores, a retail consortium. “It’s supertough to compete with that price point.” Even online, Wal-Mart sells songs for eighty-eight cents, compared with ninety-nine cents at the market leader, Apple iTunes Music Store.

Getting Wal-Mart excited about carrying a record is at the top of every label’s to-do list, but it’s harder than it sounds. There is an immense cultural chasm between slick industry executives and Severson’s team of three music buyers at Wal-Mart headquarters in Bentonville, Arkansas. Only one of the three had ever worked in music retailing — until that person moved to a new division in August and was replaced by someone who previously bought Wal-Mart’s salty snacks. (Wal-Mart also relies on buyers at its two distribution companies, Handleman and Anderson Merchandisers, who purchase records as well as stock the Wal-Mart stores.)

“Content-wise, Wal-Mart is limited about what they sell,” says one label chieftain. “Wal-Mart is Middle America’s shopping headquarters, with different buying habits and consumer tastes than those who live in Manhattan and L.A.” When founder Sam Walton christened the first Wal-Mart in 1962, music was never a priority — it wasn’t an everyday, easy-to-stock product like light bulbs, since the Top Ten changed so much. The chain also had specific objections to music. Walton wanted all stores to remain family-friendly, and in the rural South, rock & roll had the potential to turn away many customers. In 1986, the Rev. Jimmy Swaggart led one such campaign to ban music from Wal-Mart, saying rock fostered “adultery, alcoholism, drug abuse, necrophilia, bestiality and you name it.” Albums and magazines about rock (including Rolling Stone) were temporarily pulled from the Wal-Mart shelves.

Wal-Mart’s wariness about music ended once the music industry adopted a voluntary advisory sticker on albums deemed to contain adult language or sexual content. Today, before any new album is released, someone at each label is charged with asking, “Do we have any Wal-Mart issues?” If an advisory sticker is placed on an album, the label will put out a clean version about ninety percent of the time. Since the edited version of a hit record usually averages only about ten percent of a record’s total sales, they do it mostly to keep Wal-Mart happy.

Wal-Mart has loosened up a bit, too. Eminem’s albums, stickered or not, are not carried by the chain, but it does sell the 8 Mile soundtrack. And it carries an edited version of 50 Cent’s debut. Since the labels are so adept at self-policing, though, censorship controversies are now rare. “There have been examples in the past, but it’s not a current issue,” says Severson.

Wal-Mart has also urged the labels to create exclusive new products that would lower music prices. In a short-lived test, Universal excerpted seven songs from existing albums by acts such as Sum 41 and Ashanti and sold them at Wal-Mart for $7. Few other labels wanted to participate. “They proposed it to a bunch of artists and managers, but everyone was worried that we are sending a message that instead of the sixteen-track album we sold, those nine extra songs were filler,” says a label executive.

Some record executives think they can survive Wal-Mart’s push. They argue that the hottest acts will always command a premium price. “50 Cent sold 7 million copies,” says one rep, “and I guarantee that many of those sold for fifteen, sixteen dollars.” And they believe that Wal-Mart will want to carry those hits because they draw customers. “If they can’t find a record at Wal-Mart, people will go elsewhere,” says one executive. “We should play hardball.” But each label is watching the others to see if any make major concessions to Wal-Mart’s demands for lower prices. A label that gives in could gain shelf space at the expense of another. “If you lose an account, one of your rivals could get more product in the store and get one up on everyone else,” says a major-label rep. “You have to tread cautiously.”

The tug of war between the labels and Wal-Mart isn’t going away soon. The chain is aggressively opening new stores — fifty-seven in October — including some in urban areas. So unless it makes good on its threat to cut back on its music section, it will continue to grow as the top record store and become even more powerful. Laments one industry rep, “There is some impending doom associated with us not helping them.”

Price War: Does a CD have to cost $15.99?

Major labels insist that the low prices mass retailers such as Wal-Mart and Best Buy demand are impossible for them to achieve. But Best Buy senior vice president Gary Arnold counters, “The record industry needs to refine their business models, because the consumer is the ultimate arbitrator. And the consumer feels music isn’t properly priced.” Labels point to roster cuts and layoffs as evidence that they can’t sell CDs cheaper.

This breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail shows where the money goes for a new album with a list price of $15.99.

$0.17 Musicians’ unions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists’ royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead

Pink Floyd has won its legal battle with EMI over online royalties and unbundling of its albums. The group’s lawyers told the High Court in London that it disputed the calculations for digital sales royalties, and was opposed to the selling of individual tracks online.

Judge Andrew Morritt ruled in favor of Pink Floyd. EMI will no longer be able to sell Pink Floyd’s records other than as complete albums without written consent.

EMI must pay £40,000 ($60,000) in costs as in interim payment, while the judge is still deciding the level of fine.

Billboardbiz

With the rising popularity of Internet downloads, youtube, and piracy, CD sales is affected significantly. It is important to save every penny in the CD manufacturing costs in order for your music to thrive in this tough market. There are plenty of ways to do cut down your CD Manufacturing expenses without compromising the quality of your music and the attractiveness of your CD packaging. The trick is to do some research from other musicians, get the help of some people, and to follow the adage “ less is more”.

If you are producing an album for the first time and you do not have a very big budget, here are simple ways for you to cut down CD manufacturing costs.

Make your own CD Packaging design. Instead of hiring a graphic designer for your CD packaging, why don’t you unleash your creative side and make your own album art. Or if you do not have an artistic flair, you may have band members, friends, or relatives who’s really good at CD packaging art and is willing to do it for you free of charge. Do not be ashamed to ask for help from them. Remember, you are still a rising star and you need all the help you can get. Just make sure the person you choose is reliable so you would have less worries and headaches. Do not forget to credit the designer in your album!

Limit the number of pages. You have to decide on what to include inside your CD packaging. If you want to cut-down costs, it would be helpful if you limit the number of pages and only include the most essential information. Is it really necessary to include your bio, your photos, and the song lyrics in your CD packaging? If you are a new band, these add-ons could help you get recognized but always remember that there is Myspace or twitter if you want more promotion.

Do not use clear cases. Aside from the fact that clear cases usually cost a bit higher than regular jewel box cases, using clear cases also makes it necessary for you to print on both sides of the inlay card. This simply means additional paper, additional design, additional printing, and of course additional expenses.

Research on inexpensive CD Manufacturing companies. Our goal is to cut down CD manufacturing cost without compromising quality. It is not wise if you print the CD packaging using your home printer and burn CDs using your computer. The cheap quality of your album may ruin your career before it even started! The best way to do it is by having your album manufactured by a CD Manufacturing company that’s known for it’s good quality and low charge. The best thing you can do is ask other independent musicians for the best deals.

The revamp of the site now being introduced is in keeping with the strategy all three executives devised over the past 11 months They pulled the curtain back on a new version of the site that will be rolled out in installments over coming weeks and months. The new site recasts MySpace more strongly around its music and media content, with features such as the ability to listen to a music playlist based on songs that other MySpace users are sharing in their stream of updates.

Billboardbiz

This awesome packaging by Brian Porizek was nominated in the recent Grammy Awards for Best Packaging alongside Sagmeister’s work for Byrne & Eno and four other nominees. Sagmeister bagged the trophy but I should say this one is almost equally remarkable.

What I love most about this CD packaging is that it involves the buyers in the creative process of assembling this beautiful paper art. When you buy it in the store, it looks like a normal-sized digipack.

But when you open the album, Viola!

It unfolds into a quirky cardboard cutout. Awesome!

The cardboard can then be assembled to form a Spinal Tap stage show diorama that looks like this.

It may look a bit complicated but the 3-step instruction card and an easy-to-follow online instructional video makes it much easier.

First you lay everything flat on the table. Then you fold the flaps around inserts in interlocking tabs until each one fits nicely. Once the stadium is properly set-up, you can pull out the 20-page book, DVD, and CD. This collector’s item looks great in any shelf.

All photos are from frolab

March 9 (Bloomberg) — Pink Floyd is suing record label EMI Group Ltd. in London over online royalty payments and the sale of single tracks. The band is asking for clarification to their more than 10- year-old recording contract with EMI, Pink Floyd’s lawyer, Robert Howe, said at a hearing in a London court today.

Robert Howe, PInk Floyd’s lawyer, said that when their contract was negotiated in 1998 and 1999, “both parties were faced with a whole new world of potential exploitation.”

“It was unclear whether record companies would be selling direct to the consumer or through retailers,” Howe added. Apple Inc.’s online music retailer iTunes “wasn’t launched in the U.K. until 2004. These negotiations were taking place six years before that.”

Pink Floyd’s contract with EMI says albums are to be sold as a whole with tracks in a specified order and not as singles, Howe said. That should include the band’s music sold online, he said.

Read full article here