Exclusive brands are becoming increasingly important in retailers' ability to differentiate and grow sales. And now, as it turns out, exclusive bands are doing much the same for retailers.
According to a Bloomberg report, the Eagles' Long Road Out of Eden CD sold more units than any other new album in the U.S. Because the CD was being sold exclusively in Wal-Mart stores and the band's website, however, it was not originally included in Billboard's chart of top sellers, until the publication made a reversal in its policy yesterday, installing the album as number one.
Based on Wal-Mart's numbers, the first studio recording from the band sold 700,000 copies in its first week of sales. By comparison, the top-selling record on the Billboard charts, Britney Spears' Blackout moved approximately 350,000 units its first week in distribution.
The Eagles and others including Madonna and Radiohead are increasingly bypassing record companies to take sales directly to consumers. The Spice Girls are debuting their new Greatest Hits record at Victoria's Secret next week. Paul McCartney released Memory Almost Full through Starbucks' Hear Music label back in June.
Recently, Radiohead has gotten a lot of press for its unusual approach to selling its latest recording. The company eschewed working with retailers and instead chose to sell directly to consumers through its website, according to The Associated Press.
Interestingly, Radiohead chose to leave the purchase price of downloading In Rainbows up to consumers. According to research by comScore, 62 percent chose to spend nothing at all. The remaining 38 percent, however, spent an average of $6 for the album. All told, 1.2 million people visited the Radiohead site between Oct. 1 and 29.
Discussion Question: What are the changes you see taking place in the music and entertainment industry and what will it mean for retailers? For example, recording and concert sales of acts suggest that older consumers are driving much of what happens in music. How does this impact what is being sold and how it is presented to consumers?
- Eagles' Album, Sold at Wal-Mart, Sells 700,000 Copies - Bloomberg News
- Music for nothing? - The Associated Press/The Boston Globe
- Spice Girls team up with Victoria's Secret - The Associated Press/CNN.com
- Starbucks Connects Music Fans Worldwide to McCartney's New Album Through Unprecedented "Global Listening Event" - Starbucks
- A Trade Publication Alters a Rule, Lifting an Eagles Album to No. 1 - NY Times (subscription required)