DAYTON, Ohio — Video may have killed the radio star, but DVD could be the salvation of the struggling CD industry.
Music-themed DVDs are arriving in ever-increasing numbers, either as bonus discs included with new CD releases or as stand-alone DVDs released in conjunction with a CD.
For example, the British band Coldplay recently released “Live 2003,” a two-disc set featuring a DVD and CD, both recorded in concert in Australia. The chart-topping “Diary of Alicia Keys” is available as a music-only CD or with a bonus DVD of exclusive concert and backstage footage. Greatest hits CDs by Bruce Springsteen, Peter Gabriel and Sheryl Crow, among others, were released concurrently with concert DVDs from their recent tours.
What’s the reason for the rising trend? Look no further than the bottom line.
Sales of CD albums, which constitute 96 percent of the recorded music market, were down 2.1 percent in 2003. CD sales fell to 635.8 million units from 649.5 million in 2002, according to industry figures. In contrast, DVD music video sales jumped 104.5 percent. Music video sales increased to more than 19.5 million units from 11 million in 2002, with DVDs representing 96 percent of that figure.
Record labels are turning to DVDs to combat rampant Internet piracy. Bonus discs provide content that can’t easily be downloaded. They also help to justify high CD list prices, which late last year conglomerates such as Universal Music Group started reducing by as much as 33 percent in an attempt to increase retail business.
“I think that the record companies all see the need to add value to the product,” said John Huffman, owner of Gem City Records in Dayton. “It’s so easy to burn stuff or rip it off the Net, what have you. It’s something that all the record companies have kind of recognized simultaneously, and we’re seeing a lot more DVDs arrive with product, or as stand-alone, where they’re just releasing concerts on DVD.”
Mr. Huffman said that music DVD sales at his store have been “tremendous.” Gem City’s top-selling DVD of 2003 was Sheryl Crow’s “C’Mon America 2003,” which was recorded in July at Fraze Pavilion in Kettering, Ohio.
“Every week since its release, it has been in our top 10 sellers for the week, which is unusual, because we sell a lot of CDs,” Mr. Huffman said. “So to have a DVD creep into our top 10, I kind of notice that, and a couple weeks, it was top two or three.”
Stand-alone packages such as the “C’Mon America 2003” DVD and “The Very Best of Sheryl Crow” CD can be used to cross-promote one another. A deluxe edition of Miss Crow’s CD included a bonus DVD featuring music videos.
Most new concert DVDs make use of Dolby Digital 5.1 Surround Sound home theater systems to better re-create the experience of a live show.
Given the explosive popularity of DVD technology, record companies are testing the waters with two new formats, Super Audio CD (SACD) and DVD Audio (DVD-A), which improve upon the sampling rate and sound of standard CDs. But neither of the conflicting formats has yet taken off.
CD albums with bonus DVDs have become increasingly common since the 2002 release of “The Eminem Show,” which included a limited-edition DVD featuring concert and interview footage.
“That was our biggest selling record of 2002,” Mr. Huffman said. “And at that time, a lot of people were burning music off the Internet and so forth, and that’s a record that sold really well for us all year. So that’s the first one where I really noticed where the DVD made a difference.”
Bonus DVDs allow retailers to charge more for CDs, while giving the customer the perception of added value.
For example, the Red Hot Chili Peppers’ “Greatest Hits” CD has a list price of $18.98, while a CD and DVD combo, “Greatest Hits and Videos,” retails for $24.98. Sales at Gem City have been even for both versions, Mr. Huffman said.
A number of new releases are priced the same with or without the bonus disc, he added. “Like the Alicia Keys came with a bonus DVD, and it was the same price either way. So, duh, what would you do?”
Record companies, no doubt, hope that you’ll buy one version or the other — rather than downloading it for free.
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