Sony BMG Can't Let Go Of Putting Out Physical Product - Idolator Comments

Sony BMG Can't Let Go Of Putting Out Physical Product

Jasonbob7 — Fri, 21 Dec 2007 12:49:42 EST

I think the idea is pretty good. While I agree that it's way more convenient to find and download songs on your computer, there's a lot to be said for the "impulse buy" aspect of music purchasing. That's why CDs do well in non-record stores (Best Buy, Hot Topic, Whole Foods, etc) where the distributor can target an audience more closely. These cards fill the same purpose, only they're cheaper to display (you could fit at least 20 cards in the space taken up by one Jewel Case) and more convenient to carry around.

I still think the price point is ridiculous, though. Who's gonna pay $13 for some downloads???

Jasonbob7

Sony BMG Can't Let Go Of Putting Out Physical Product

Rob Murphy — Fri, 21 Dec 2007 11:23:16 EST

@DHMBIB: Yes, I did miss at least three additional important points:

7) Because these are "impulse buy gift cards", Sony can strike deals to put these cards in lots of non-"music" outlets -- drugstores, coffeehouses [though probably not Starbucks, and you know why], clothing retailers, etc.

8) If, as the article tells us, the cards offer single-album downloads, Sony can continue to market the concept of "the entire album" against the iTMS' more nihilistic "only the songs you like" pitch.

9) Also, Sony can leverage the artists' brand to pitch the cards against Apple's faceless cards. You're likely to see the artists' branding tie in to the specific locational deals as well -- Feist cards available at The Gap, for example [yes, Feist is UMG, but you get the idea].

Anything else???

Rob Murphy

Sony BMG Can't Let Go Of Putting Out Physical Product

SuperUnison — Fri, 21 Dec 2007 11:21:49 EST

I think that they should put them on a USB dongle. That way, they can justify $20 instead of $13 by giving people a tchotchke to take away. Then, I think that they should contractually define said dongle as a promotional expense, thus negating any need to pay royalties to the artist.

SuperUnison

Sony BMG Can't Let Go Of Putting Out Physical Product

Rob Murphy — Fri, 21 Dec 2007 11:01:43 EST

This is not as bad an idea as we're thinking, I suspect. One of the things we're not seeing clearly is that these are not cards consumers will buy for themselves -- these are "gift cards" that consumers will buy for other people.

Look at it this way -- Sony gets to do all of these things:

1) expand distribution of musical product using a format that is already ubiquitous and accepted by consumers ["gift card"];

2) get placement in the "impulse purchase" location of the retail world [at the register], where physical CD's are not accepted;

3) increase density in the end-of-aisle highlight bin in the shrinking real-estate of the "music department";

4) gather data on whether consumers will mass-trade label-offered unprotected digital tracks, any more than they already trade ripped tracks [you do know that the redeem code, or some other unique identifier, will be part of the ID3 tag, right???];

5) gain leverage against Apple and the iTMS by taking market share ["plays on all music players!"]; and

6) make more $$$ than they get from the iTMS for the tracks.

Sony has virtually nothing to lose by doing this, and if it's not a "hit", so what???

The dumbest part of this story is that Sony will miss the gift-purchasing season. The best part of this story is that Sony is entering the DRM-free digital track world.

Did I miss anything?

Rob Murphy

Sony BMG Can't Let Go Of Putting Out Physical Product

AL — Fri, 21 Dec 2007 10:33:05 EST

@GovernmentNames: I took the "select mix of hit and catalog titles" to be referring to albums. As in, each card will be good for 1 album, and the albums offered will be selected from this mix of "hit and catalog titles".

Sony BMG Can't Let Go Of Putting Out Physical Product

Dead Air ummm Dead Air — Fri, 21 Dec 2007 10:12:38 EST

This makes about as much sense as the Digital Compact Cassette and the Ringle.

Dead Air ummm Dead Air

Sony BMG Can't Let Go Of Putting Out Physical Product

Al Shipley — Fri, 21 Dec 2007 09:51:45 EST

Whether this is a decent idea or a terrible one really depends on how much music will be contained in this "select mix of hit and catalog titles." 80 minutes? 4 songs? A dozen full albums? It really isn't clear what they're going for based on that tidbit.

Al Shipley

Sony BMG Can't Let Go Of Putting Out Physical Product

ragandboneshop — Fri, 21 Dec 2007 09:20:07 EST

So you drive to a store, buy a *thing* that has no lyrics or album art to speak of, and no music either, and it gives you the right to go back to your computer at home and download the songs, *which you could have done for less money before you even left the house*.

The mind boggles.

ragandboneshop