Professional Documents
Culture Documents
- Concentration of distribution
However many independents there
are, the four major recording
companies are still distributors of
choice because of the power they
bring to the marketplace.
Being large organizations, they are
able to spend a lot of money to push
artists that their executives believe
have promise. In fact, these
distributors insist that their size and
their strong international presence
give them a stature and credibility
that make them the distributors of
choice.
Record clubs
Another major way to
distribute recordings is
through clubs such as
Columbia House. RIAA data
indicate that these clubs have
gone up and down in recent
years, from 4.1 percent in
2003 to 12.6 percent in 2006
and then down to 7.2 percent
in 2008.
It’s hard to know if the
economic recession was a
factor in the most recent
downturn. Record clubs do
encourage long-term
consistent purchases.
Individuals are enticed into
joining these clubs by
newspaper or magazine ads
offering low-cost introductory
specials, such as seven CDs
for 1 cent.
Members also sometimes
agree to buy a certain number
of albums later at the regular
price. Often artists receive a
lower royalty on sales of
recordings through these
clubs.
Direct sales
Direct sales account for just 1.8
percent of all revenues.
Products sold through the
“direct” channel frequently are
compilations of old songs on
such themes as Christmas
hymns or the greatest disco
hits.