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

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.

Activision is playing the lawsuit blues

Activision (NASDAQ: ATVI) can rock its shareholders just as hard as a blood-spitting Gene Simmons at a Kiss concert. And we all know why -- the Guitar Hero franchise is, simply put, one of the most popular videogames out there, and it is available for all the major console systems from Sony (NYSE: SNE), Microsoft (NYSE: MSFT) and Nintendo (OTC: NTDOY). It's also a pain in the neck for other publishers such as Electronic Arts (NASDAQ: ERTS), Take-Two (NASDAQ: TTWO) and THQ (NASDAQ: THQI), since they have to put up with the franchise's dominating power. But guess what, the inevitable has come to pass -- Activision is being accused of patent infringement!

Yes, you can't be very popular, you can't rake in millions and millions of dollars in profit for shareholders and expect to get away unscathed. Gibson Guitar, according to this Associated Press piece, believes Guitar Hero infringes on a patent it holds for a rock-concert simulator. The patent apparently goes back to 1999 and it contains a description for a system that uses a 3-D headset in conjunction with a musical playback. Activision decided to file a suit to get a court decision declaring that it is not infringing on any existing patent.

Continue reading Activision is playing the lawsuit blues

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Last updated: November 22, 2008: 12:12 PM

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