6.12.11 Adam News & Info
Jun 12, 2011 12:01:06 GMT -5
Post by Q3 on Jun 12, 2011 12:01:06 GMT -5
This is part of the why I ranted about this "sale" last week. But it took me until this week to realize that it proved that everything had changed.
You have an event album -- many retailers were told it was THE album of the year -- but consumers bought it online rather than on CD because it was only $0.99.
So the retailers paid to stock the CDs, they will have to pay to pull the CDs, and in the end the landfills will get much bigger.
But when Soundscan counted these as retail sales, that was then total end. The organization the industry uses to count sales save a digital album sold for $0.99 is a retail sale -- that means that albums essentially are just content for subscription services.
I believe I had read that Amazon paid the full (vendor) price to GAGA and took a loss to sell it at .99.. so it would count as a sale..
That matter for a wholesale sale for RIAA. For example, if I buy 1,000 FYEs from RCA and give them to everyone here -- that is 1,000 wholesale sale units, but 0 retail sale units.
When Amazon sold FYE for $3.99 in November 2009, those sales were not counted as retail sales.
Up until this event, a retail sale had to be at least 50% of the Manufacturer's Suggested Retail Price to count as a Soundscan Retail sale. Two different things. Soundscan changed the rule without explanation but the belief is because they categorized it as a bundled sale with Amazon Cloud service BUT that is free right now.
The other theory is that it was a response to the FTC looking at unfair pricing practices in the music business. And there are questions about music pricing in the US being artificially supported by industry collusion -- the $1.29 iTunes track price increase deal looks like price fixing. UMG and Sony both raising CD prices at the same time. Etc.