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Originally Posted by redvelvetstudios  with all do respect, I think there's some confusion and misinformation in this post.
first off, the majors love walmart as it is the last stand of physical product and often make sweetheart deals with walmart to increase profits on volume even with reduced margins.
even as CDs are phased out - physical product will be a hits business for huge acts and key catalog - and walmart will remain the front runner in that (physical) side of the business
two, I can't imagine any scenario where a major label would put into a bands contract a clause that specifically states the major label is opposed to selling the new bands CDs to walmart - makes no sense at all.
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Walmart is a different distributor than anyone before and they are not stupid either. They ask for a bigger cut for distributing product in their stores which the major labels as the middle men do not like. They also will only sell certain types or artists.
Labels are used to calling the shots and determine who gets what. It gotten so bad to the point that Walmart started going to the artists themselves and offering them a better cut(Walmart wanted $5-$6 for every CD) than they could get from the label themselves, in essence freezing the labels totally out which i can tell you is a fact they didn't like at all. Some artists went for this and cashed out/did well. After this the labels basically have been putting the squeeze on Walmart and their artists. And yes they can include any clause they choose because you as an artist are asking to be represented by them and they will protect themselves as they see fit.
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Originally Posted by redvelvetstudios
no doubt the majors are strategizing an all digital future, they have no choice.
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This has been in the works non stop the last 2 years. The IT guys at the labels are actually more important now than the A&R's. They are the point men in all of this. Also the amount of cooperation between the major 4 is unprecedented. I've never seen the guys this united on one thing.
Here in NYC this year secretly they have been setting up specific smaller digital media stations/mini studios that will monitor all future activity on the street level. This way everything is not tied up just to one system, but with the ear to the ground they can act quickly. Basically in one of these stations you can sign an artist with some street buzz, write the songs, record it, mix it, master it, up load it to the site all within a week and it will be distributed and promoted immediately while the buzz is still there. In the past it would take months to put something like this together but the majors see how acting faster this way will not only be cheaper for them but they can capitalize on the buzz right there and now. Also its less of a loss and if its hits big they can cash in.
Most of the people i've spoken to that are heading up these "stations" are established producers/engineers/songwriters that have hits & track records to their names. Its really an interesting concept that should generate new music/ideas in the future.
Now there is no guarantee that things from these products will sell but at least it will be a chance.
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Originally Posted by redvelvetstudios it should also be noted, in the world of the majors things are preffered just as they were a decade plus ago - no digital distribution, and no mp3s... but the genie is out of the bottle and where are where we are... |
I don't know if you've noticed but this decade is up. The future is here. Now its up to us to see how we fit and how we can capitalize on it.
In terms of the future of the Cd's what i've been told is they will be sold in special box sets, kind of how they sell special vinyl box sets.