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Wal-Mart set to score big with exclusive AC/DC release

Richard Driver — Fri, 24 Oct 2008 11:50:00 EST

Filed under: Products and Services, Consumer Experience, Wal-Mart (WMT), Marketing and Advertising, Viacom (VIA), Best Buy (BBY), Verizon Communications (VZ)

Billboard reported Tuesday that AC/DC's new album Black Ice, sold exclusively at Wal-Mart Stores, Inc. (NYSE: WMT), is "flying off the shelves" at both Wal-Mart and Sam's Club retail outlets. It is estimated that the album sold 193,000 copies in its first day of release (Monday), and is expected to sell nearly 800,000 by the end of the charting week. Black Ice is AC/DC's first album of new material in eight years and has spurred the release of a special "track pack" for Viacom Inc. (NYSE: VIA)'s Rock Band video game.

Despite the positive sales of the new album, Wal-Mart shares have lost over 5% since Monday, the day the album was released. The apparent non-effect of the album on Wal-Mart shares could be due to its own exclusivity, meaning some shoppers may be entering stores only to purchase the album. It could have nothing to do with the appearance of the album as well, which is a more likely scenario considering trading and the market this week.

Still, the success an exclusive album in the market right now indicates the positive and negative aspects of exclusivity with the music industry to market physical albums in a system focused on digital sales. AC/DC is not aligned with the major digital stores either, meaning that the move could be akin to the band's agreement to offer songs, albums, and other content with Verizon Wireless (NYSE: VZ).

Wal-Mart has taken the lead in selling albums exclusively, although most albums are live recordings or collections. The new album from the Eagles last year was the first time a new album of studio material was released exclusively to massive success. Best Buy Inc. (NYSE: BBY) will follow the trend soon with the exclusive release of the long-awaited new Guns 'n' Roses album, Chinese Democracy. Investors interested in the music industry and retail outlets would be wise to consider these decisions since they are indicators of massive success, even if that success is short-lived and does not make physical formats more viable in the current digitally-focused market.

Wal-Mart set to score big with exclusive AC/DC release originally appeared on BloggingStocks on Fri, 24 Oct 2008 11:50:00 EST. Please see our terms for use of feeds.

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Fall album releases raise new questions for the music industry

Richard Driver — Fri, 29 Aug 2008 14:31:00 EST

Filed under: Products and Services, Consumer Experience, Marketing and Advertising, Walt Disney (DIS), Sony Corp ADR (SNE)

The Associated Press reported on five upcoming albums this fall in an article posted yesterday, raising new questions about the music industry and the success these albums may enjoy. The big news are the number of comeback albums being released in the next few months, notably from Metallica and Australian band AC/DC. Both albums come after lapses of five years or more from the artists, a time period that has seen major upheaval and change in the industry, and the AP cites reports that both return the bands to their roots.

Nevertheless if Metallica and AC/DC are returning with new material, the music industry is simple not a safe place for anyone involved with it: artists, managers, investors, and vital customers. In fact, both Warner Music Group Corp. (NYSE: WMG) and Sony Corporation (NYSE: SNE), which owns Sony Music Entertainment Inc., have seen declining prices throughout the summer. None of this is any different from the declines the industry has been seeing in recent years, but digital sales and excitement over new albums in the summer might have pointed in the opposite direction.

The AP's projections for other top albums this fall include material from rapper T.I., still reeling from a weapons charge and punishment, and High School Musical 3 from Disney (NYSE: DIS). It is just too hard to suggest if these projections are reliable in an industry currently in flux and continuously declining. However, they are sure to be successful, in particular the next installment of High School Musical, but they will probably all be paled by an unexpected success. If the summer excitement could continue from the festivals and tours into the fall, then these albums could do well, but whether that will improve the industry or improve investors is just too risky to speculate.

Fall album releases raise new questions for the music industry originally appeared on BloggingStocks on Fri, 29 Aug 2008 14:31:00 EST. Please see our terms for use of feeds.

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Wal-Mart to be exclusive distributor for AC/DC album

Zac Bissonnette — Mon, 18 Aug 2008 15:07:00 EST

Filed under: Wal-Mart (WMT), Marketing and Advertising

AC/DC made its name as one of the pioneers of hard rock and heavy metal, but the band's latest gig has a decidedly corporate ring to it: the band's new album, Black Ice, will be available exclusively (subscription required) at Wal-Mart (NYSE:WMT)

It's the band's first album of new material in eight years, and will be debut on October 20th at the "everyday low price" of $11.88. AC/DC's music has never been available on iTunes.

Classic rock bands including The Eagles and Journey have made albums to be sold exclusively at Wal-Mart and, while it doesn't exactly have iTunes quaking it in its boots, it is one gimmick that's keeping CD's relevant for at least a little while longer.

Artistically, it's more than a little bit pathetic to see bands that used to be so cutting-edge hocking their wares through an exclusive arrangement with the world's largest retailer.

It's a good thing The Beatles broke up so its rabid fans wouldn't have to endure stuff like this.

Wal-Mart to be exclusive distributor for AC/DC album originally appeared on BloggingStocks on Mon, 18 Aug 2008 15:07:00 EST. Please see our terms for use of feeds.

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AC/DC become latest veteran act to team up with Wal-Mart

Richard Driver — Mon, 09 Jun 2008 18:09:00 EST

Filed under: Products and Services, Consumer Experience, Apple Inc (AAPL), Wal-Mart (WMT), Marketing and Advertising, Verizon Communications (VZ)

AC/DC has become the latest veteran music act to join with Wal-Mart Stores, Inc. (NYSE: WMT) to release a new album solely with the retailer, according to the Wall Street Journal. The currently untitled album is expected later in the year and will be the first album of new material from the Australian rockers since 2000, while a tour in support is also expected to follow the new release. Although slated for release solely in Wal-Mart stores, the album is distributed by the band's longtime label Columbia Records, a part of Sony BMG Music Entertainment.

AC/DC follows a number of large selling artists: Garth Brooks, the Eagles, and Journey. The Eagles famously released their first new album in 28 years with Wal-Mart and according to Nielsen Soundscan for Billboard, Long Road Out of Eden has sold almost 3 million copies in the United States. Journey released an album of new material and newly recorded hits last month with Wal-Mart. In addition to this coup from Wal-Mart, AC/DC continues to remain one of the only acts not present in Apple Inc.'s (NASDAQ: AAPL) iTunes Store, the largest music retailer.

The band's music has been available in digital from from Verizon Communications (NYSE: VZ) VCast Music service since March 2007, but only in album form -- a format iTunes does not support. However, AC/DC digital downloads were not available on Verizon phones as full albums were too large. The new album from the band certainly has excellent prospects with Wal-Mart, but an even greater coup for the retailer would be to score the digital catalog for sale on the company's own digital store.

AC/DC become latest veteran act to team up with Wal-Mart originally appeared on BloggingStocks on Mon, 09 Jun 2008 18:09:00 EST. Please see our terms for use of feeds.

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Wal-Mart (WMT) works to corner part of music market

Douglas McIntyre — Mon, 09 Jun 2008 11:00:00 EST

Filed under: Deals, Industry, Consumer Experience, Competitive Strategy, Apple Inc (AAPL), Wal-Mart (WMT), Apollo Investment (AINV)

Wal-Mart (NYSE: WMT) is cutting exclusive deals with major artists in a play to improve traffic to its stores and online operations.

According to The New York Times, "Wal-Mart was the largest music retailer in the country last year, so musicians (and their labels) are eager to maintain good relationships, appearing in the special concerts for the chain, which are also open to the public."

But The Wall Street Journal had a much better picture of what is going on. Rock band AC/DC is about to announce a partnership with Wal-Mart in which it will sell its new album only in the largest retailer's stores. The paper writes, "The AC/DC deal, however, comes at a time when the retail giant -- the largest seller of compact discs in the nation -- is signaling it may rock the music world by stocking fewer CDs."

Both papers point out that the deal will hurt music labels that count on CD sales, but neither shows the extent to which Wal-Mart is becoming the unlikely largest competitor to Apple (NASDAQ: AAPL)'s iTunes. AC/DC's music will not be found there.

Media companies can't stand up to Apple, but in an odd twist, the world's largest retailer can.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

Wal-Mart (WMT) works to corner part of music market originally appeared on BloggingStocks on Mon, 09 Jun 2008 11:00:00 EST. Please see our terms for use of feeds.

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