CD sales in metal

If you can believe it, Lamb Of God has gone platinum with the latest album Sacrament. I guess thats why they are co headlining ozzfest. They literally tour non stop though.
Dream Theater has sold over 10,000,000 albums collecively worldwide. They are basically a gold album band. Or get close to going gold everytime they release an album.
 
Interesting subject, being that it is something that our own band has talked about on many levels recently. Hopefully I don't ramble to incoherently here or repeat what has already been said...

Concerning downloading (be it legal or illegal), I posted my general opinion as a consumer on the matter on this thread:
http://www.ultimatemetal.com/forum/katagory-v/277800-cds-become-obsolete-now-way.html

Ironically, our guitarist Marc, who has found the convenience of downloading albums (he buys music digitally now) rather than purchasing hard copies; He has laid claim that many people do it illegally because they feel music is a "Disposable commodity". He hit the nail on the head, I really don't think there is a phrase that describes it better than that. As a musician that has to spend half, if not more, of his/her own money out-of-pocket to create something that fans will enjoy and hopefully respect, it is disappointing to think it's all being taken for granted and for free. Why bother even doing it? It's like spending several thousand dollars on a huge dinner that feeds a city and inviting everyone in the town to come, enjoy and eat your creation, and after everyone eats, no one pays or leaves a tip... Not even a thank you! ...and then being left to clean up the dishes to boot. Again, disappointing, but just my feelings on the matter.

So, if everyone in the world felt music should be free, or that they deserve it and shouldn't have to pay for it, then who will be around to create it for free when that time actually comes? It certainly won't be me...
We're content if we just break even, but if it comes down to it, we won't do it anymore if we can't at least do that much.

A real conundrum indeed.

Concerning touring, Lance said it best (again!). Due to nearly all independent/minor labels unable to supply tour support or even large advances to compensate the cost due in part to the market theses days, this means it's also all out-of-pocket expenses. So if you can't afford to tour on your own, or buy-in, and get your name out that way, then you have to rely on "the buzz" strictly at that point to sell albums, which will be smaller scale. Most bands, if not all in the minor/indie side, have day jobs. When your band members are between 30-40 years of age, have kids and a mortgage, you can't just buy-in to a tour and disappear for two months, not with the way the business is these days. Personally We'd LOVE to get out and tour, in fact we talk about it all the time! But, it's not financially feasible. We just hope to at least get invited to a few festivals down the road and appease our fans in that respect, or cross our fingers to be invited on tour with a larger act without having to buy in, but in any respect, it all costs money and time which is not a luxury unless you live with mom and dad (or mooch off your girlfriend like the guys in the movie Airheads), have no other responsibilities other than showing up at your part-time job at
Starbucks, so you can have enough money to get strings, and pay your car insurance. Am I being cynical? Yes! Is the scenario true? Most of the time...

We've had a few offers in the last year and a half from "supposed" promoters on the mid-west and east coast asking us to come out and play one-off's at their club(s) with their local acts, and expect us to do it all on our dime, with no guarantee whatsoever other than supplying us a back line. $450.00 per person on airfare, + hotel and cab from the airport to venue and food expenses... To play a show like this at our cost as a headliner that isn't even that well known, that may or may not have a decent draw? We'd be lucky to make a 1/4 our money back in merch sales. Some bands would do it just for the exposure, even if 10 people showed up, However, we won't do that anymore, we'd be willing to meet with the promoters halfway or work something out, but to do it all for free? That's just insane to bankrupt a band (or individual) over a small bar gig half way across the continent.

Traveling the country in a van is one thing, flying in for a one-off is another story. However, to play on the main stage at say, Oh... a metal festival with other bands on the same level or bigger? In front of several hundred if not thousands of people? and pay our own way? Well sure, That makes more sense! You bet we'll do it!!!

I will agree, there are SO MANY bands these days, and with the glory of myspace, we get up to 10 friend request a day from bands all over the world, pimping themselves out for fans on our page. I honestly used to try and check them out as they came through, and after hearing so many substandard acts, many of which have no right creating music, but insist on it because they can play a few chords or hit on the drums, and have the money to own a digital recorder and a basic version of pro tools... Its nearly frustrating sift through all that.
These "bands" are vying for our fans? At 10 bands per day!? That's just too much. I can only imagine how the minor labels feel if they get demo's sent by only a fraction of the bands, it would be overwhelming and make one feel jaded. My radical theory is, if the music industry indeed collapses to the digital age, and all musicians have to become free agents and market their own music in the myspace fashion, then musicians will resort to being chepo telemarketers/cyber marketers/spammers to gain fans, pummeling your email, and telephones to get you to buy there product, justifying their existence and pocketbook, and that my friends, will be a sad day. When that happens, I will resort to isolating myself in the basement, with my most cherished CD's clutched in white knuckled hands, and cry naked in my own fecal matter, waiting for death to take me.

The mighty territorial debate...

Why do bands sign to more than one territory? And what is the big deal with labels and vendors encroaching on each other? Lance has done a fine job in going over this. But I wanted to throw my 2 cents in.

Some of the smaller labels can still get their product into any territory via international distro or via their own smaller channels directly. And if the band doesn't have multiple territories secured, then whatever label they are signed to has fair game to sell it to who ever will buy. However, if a band has multiple labels in multiple territories; it's considered common curtousy that if it is brought in to an opposing territory as an import, it should be sold by that vendor and/or distributor at an inflated price to protect the domestic release if they get it at wholesale cost. This usually isn't the case, some distributors/vendors won't do that based on demand and wanting to be "the first to get the sales", and will sell the import at domestic price, especially if they got it at wholesale cost to be more competitive than chain outlets (i.e. Amazon, FYE ect. ect)

What do some, or most labels do to help combat this? Alternate album covers, Bonus tracks, bonus CD and/or DVD. The bonus track, A practice made infamous long ago by Japanese labels, and is the most common, but there are the other options as well which I laid out. Some fans feel this is the record labels trying to "fleece" them and make more money off of them, but in reality, it is all about keeping things under control concerning territory, and protecting there assets and investments on said artist. A handful of Hardcore fans will buy multiple copies to get all the bonus material, but most are passive fans that will either wait for the domestic release, or impatient fans that will pay high dollar for the import just to have it one or two months early and bypass the domestic version. We all know Edguy pokes fun at this, but if you read the tongue-in-cheek lyrics, they will tell you the same story.

So, when a domestic vendor acquires a product from another territory, and sells it at nearly the same price as the domestic version far earlier than the domestic release, this can hurt the bands domestic sales, and obviously look bad on their part in the domestic labels eyes that is putting the money behind them. Sure, the band might make it up from the other territory it came out of, but even then, it's not really ethical. Even if the domestic label is aware, the low sales figures could damage the relationship in the future due to a few vendors sweeping in and selling off their low-priced import copies from another territory, to fans that would have bought it domestically.

If there are 200 fans that would have bought it domestically for $13.99 but got it 1 - 3 months early for only a dollar more, that really isn't fare to the domestic label, is it? However, would these same fans buy it at $24.99? The price it should be? Would they do it if it didn't have any bonus material? Probably not, most would wait and get the domestic release.

These are things that the average metal fan isn't aware of, and if they were, they would probably make different purchasing choices, maybe. If it became common practice, and all the domestic labels went belly up due to this, then offshore distributors could gouge the hell out of the vendors, as well as consumers, as we would have no choice but to by the imports at there inflated price.

Our new album will be out on Nightmare Records the same day as the Burning Star Records version (October 16th), and both labels seem to have total respect for one another in the matter. In fact, it's possible that the Euro release will be a few weeks latter, and the U.S. version will be the first on the market, which would be a first in itself, but the plan is to have them released consecutively to avoid the fiasco that is described in the previous paragraph and earlier discussions. However, in the event that they are not released consecutively, each album has two different bonus tracks for each territory, and both albums will 11 tracks total. Everything was done with the our band, the record label AND our fans best interest on this release.

As far as the business as a whole, pretty much what Lance and everyone else has been saying, rings very true. It's evolving rapidly, and is very overwhelming to say the least. We've been a band for eight years, have 4 albums and each time we start writing another album, we wonder if it will be our last due how unstable things are. Any band just getting started right now, that is new to the business end of things, could possibly see the as the end times... Or the dawning of a new era.

For me, I'm a pessimist, and with the music business, we are nearing the end of days.


 
If there are 200 fans that would have bought it domestically for $13.99 but got it 1 - 3 months early for only a dollar more, that really isn't fare to the domestic label, is it? However, would these same fans buy it at $24.99? The price it should be? Would they do it if it didn't have any bonus material? Probably not, most would wait and get the domestic release.

These are things that the average metal fan isn't aware of, and if they were, they would probably make different purchasing choices, maybe. If it became common practice, and all the domestic labels went belly up due to this, then offshore distributors could gouge the hell out of the vendors, as well as consumers, as we would have no choice but to by the imports at there inflated price.

I'm missing something. You get all doom and gloom in the second paragraph I quote here, saying that no domestic labels means getting charged more for import CDs in the long run.

Yet in the first paragraph, you're saying imports "should be" $24.99 but they're currently being offered for $14.99 ("a dollar more" than the domestic price of $13.99). I'm not understanding why you're thinking albums would jump dramatically in price when currently albums with no domestic distribution (and this goes both ways across the Atlantic) are within a dollar (or euro) or two in price of other, domestically released albums (and I'm talking dedicated mailorders, not mainstream stores and sites that sell Madonna CDs and shit). Foreign distributors are still going to want to move as much product as possible, the same as they do now, right?

I'm also wondering as a fan what the difference would really be between getting gouged this extra $10 as a courtesy for domestic labels or getting gouged because there is no domestic label.

each album has two different bonus tracks for each territory, and both albums will 11 tracks total. Everything was done with the our band, the record label AND our fans best interest on this release.

You're releasing Frankenstein versions of your album and withholding songs from people who will be paying (as opposed to downloading, bonus tracks in different territories won't make a flip difference there, downloaders will have them all anyway) for your albums, and this is in your fans' best interest?

And I'm curious how you decided which songs were going to be "bonus tracks" that only half of your available paying audience should have.
 
Territories matter to labels, but not necessarily vendors or fans. As has already been pointed out the corner CD shops are quickly vanishing, and Internet sales are becoming the predominant way of buying music be it digital or disc. Therefore, vendors are no longer limited to neighborhood walk-in customers. By nature online vendors become international business capable of providing a product to anyone with access to a web browser.

Bonus tracks could work to keep customers regionally loyal, but they have to be used as incentive. If a US release date is to be 3 weeks after a European date the US version should be the only one with bonuses and vise versa. That gives the US customer an incentive to wait. Putting bonuses on both does nothing. Why wait three extra weeks to get a disc that has bonus tracks instead of getting one now for the same price that has different bonus tracks? In the end the buyer gets bonus tracks, which are usually live versions of previously owned songs, or songs not good enough for the current or past albums.

Granted more competition from overseas creates hardships on a regional label, which works both way incidentally, but to be blunt that's not a vendor's problem. The vendor is obligated to preserve, promote and grow his/her business. Not preserving someone else’s business, which may in fact be competition. As for putting a domestic label out of business, one would have to assume that the foreign label would be getting releases out to market first consistently. If on the other hand labels get releases out simultaneously in most cases, and consecutive release dates are distributed evenly between territories theoretically sales should even themselves out.

The entire music industry including labels may very well have to reinvent itself as technology changes the marketplace. It could be the end of days for things the way they are done now, but I think dawning of a new era is a far more likely scenario. Whenever there’s a demand for anything someone will find a way to sell it.
 
I'm missing something. You get all doom and gloom in the second paragraph I quote here, saying that no domestic labels means getting charged more for import CDs in the long run.

Yet in the first paragraph, you're saying imports "should be" $24.99 but they're currently being offered for $14.99 ("a dollar more" than the domestic price of $13.99). I'm not understanding why you're thinking albums would jump dramatically in price when currently albums with no domestic distribution (and this goes both ways across the Atlantic) are within a dollar (or euro) or two in price of other, domestically released albums (and I'm talking dedicated mailorders, not mainstream stores and sites that sell Madonna CDs and shit). Foreign distributors are still going to want to move as much product as possible, the same as they do now, right?

I'm also wondering as a fan what the difference would really be between getting gouged this extra $10 as a courtesy for domestic labels or getting gouged because there is no domestic label.


No, I think you read it right; I just didn’t separate the two examples very well. For the record, it’s difficult to accurately type an epic post at work after drinking too much coffee and dodging the boss. :Smug:
Reading back, I can see how it is contradicting so, I’ll make a pass at it again and shorten it up, but I’m not making any promises.

The doom and gloom…. Let’s talk dedicated mail order/niche market. Do you remember back in the early 90’s, before the internet boom, when you had to pay upwards of $20-$30 for a CD of less-than-popular metal bands? Possibly due to them being dropped from the domestic label, or the lable pulling out of the U.S or even closing its doors all together due to being crushed by the changing music scene? I often refer to it as “The Dark Times” of my CD buying days. Well, maybe I was just a terrible CD shopper back then and didn’t have good connections, but in any case, I remember paying over $20 for an Annihilator CD in 94’ and nearly $30 for a Savatage album in 97’ because you could not get them very easily or in stores no matter what. OUCH!!! Keep in mind, I am in Utah, there were not a lot of options in those days.

Back then, vendors and importing labels could get away with those prices, because there was a demand, the internet was in its infancy, and there was little if any compitition amongst the niche mail order or “import” CD sellers. However, I was merely speculating that if this price crisis happened again, (only this time due to territorial issues rather than the change in music styles), who’ to say that they couldn’t get away with it? Sure, with the on-line vendors at your finger tips, being able to buy from around the world with the click of a mouse and a credit card, and it being the dawn of digital age, it probably would not happen like that again. But, there would be no domestic availability, so who’s to say it wouldn’t happen again, it still could be a remote possibility on a differnet scale.

That leads me to the “as far as vendors that should be” charging such an outrageous price to support the domestic labels – this was my only solution that I felt would deter or curb consumers from buying the import early and sticking with the domestic releases. I didn’t say it was a good idea, just a possible scenario or solution that would be ethical between the domestic lables and their vendors… but severly immoral to the vendors costomer base. I guess either way; there would be collateral damage one way or the other. After all, we are talking about people’s money, and we all know that when it comes to spending money, cheaper is better. But again, why would most vendors care, they have the product available to them and they have a customer base to support it, end of story. Who cares where it comes from, right? Technically it’s not the vendors/distributors fault entirely (unless they have a conscience), it’s a “shame on you” to the importing lable selling under the domestic labels nose direct to the vendor/distributor at such low prices.

I was only implying that “if” vendors had been gouging consumers all this time on imports, even while getting direct distro from the importing record labels for dirt cheap prices, we’d all be none the wiser, and wouldn’t even be having this discussion. Instead, We would all be bitching up a storm about how insane it is to have to pay a lot of money to get an album from our favorite band early (bonus material or not), or bitch because you have to wait for it to come out a month or two latter. The handful of hardcore fans would buy it now at a crazy price; the passive majority of fans would buy it latter.

As far as what “the difference would really be between getting gouged this extra $10 as a courtesy for domestic labels or getting gouged because there is no domestic label.” Well, there is no difference, getting gouged is getting gouged and hurts like hell in your pocket book. Knowing and not knowing that your getting gouged is the real difference. Again, not a good idea on my part, just throwing it out there as a likely scenario that would solve the problem.



You're releasing Frankenstein versions of your album and withholding songs from people who will be paying (as opposed to downloading, bonus tracks in different territories won't make a flip difference there, downloaders will have them all anyway) for your albums, and this is in your fans' best interest?

When you say it like that, you make it out like we’re trying to take our fans for a ride, which isn’t the case, and I think you know that. So, being that you want a more crystal clear explanation, I’ll put it out there in black and white. It was either do that, or no new album... ever.

The bottom line is – it costs money to make an album, and it also costs money to manufacture, promote and distribute an album, which you already know as well. We can’ afford to do it all, and if we had to do it all ourselves on our own dime, it would not happen. Fortunately, There are those few labels out there like Nightmare or Burning Star that believe in our music and support us and want to get it out there to the fans, but, they have to also protect their interest as well being that they do not have branches/offices on every continent. So, to continue down the path of creating and releasing new music for our fans, we had two choices of which would be in their best interest: slight our fans two songs out of eleven? Or… slight our fans a whole new album entirely and call it a day? ….we decided to go with the first option in our fans best interest. I think they will understand, at least, we hope so. As a huge fan of music in general, I know I would undestand.

And I'm curious how you decided which songs were going to be "bonus tracks" that only half of your available paying audience should have.

for the record, we are not firm belivers in bonus tracks/material, but you gotta do what you gotta do. I can only say that it’s like picking which child is your favorite and wasn’t done very easily. Plenty of sleepless nights and arguments amongst the cheifs in the band, and I don’t wish the experience on my worst enemy.
:ill:
 
Territories matter to labels, but not necessarily vendors or fans. As has already been pointed out the corner CD shops are quickly vanishing, and Internet sales are becoming the predominant way of buying music be it digital or disc. Therefore, vendors are no longer limited to neighborhood walk-in customers. By nature online vendors become international business capable of providing a product to anyone with access to a web browser.

Very true, I also make note of that in my reiteration with Jim above.
But, even then, not every metal fan has a computer or access to buy online. I guess it’s a toss up between appeasing the majority or minority. The majority used to be walk-in store front buyers, and the minority was the internet shoppers, but it is changing direction fast.


Bonus tracks could work to keep customers regionally loyal, but they have to be used as incentive. If a US release date is to be 3 weeks after a European date the US version should be the only one with bonuses and vise versa. That gives the US customer an incentive to wait. Putting bonuses on both does nothing. Why wait three extra weeks to get a disc that has bonus tracks instead of getting one now for the same price that has different bonus tracks? In the end the buyer gets bonus tracks, which are usually live versions of previously owned songs, or songs not good enough for the current or past albums.

Again, True, true, but as I told Jim, for us - it was that… or no album at all. It might not be a good reason for some, but it was for us.
Among live songs, covers/previously songs and songs not good enough to have been on the album anyway, you forgot re-recorded tracks, which is what we did. If you heard our fist two albums, you would know why we took advantage of that and re-recorded some older fan favorites. Who knows, some of our fans may think it’s sacrilegious and run us up the flag poll for doing it, but the earlier versions are terrible, at least we certainly think so. not to mention, the albusm are out of print/ Thats our incentive to the fans. :cool:


Granted more competition from overseas creates hardships on a regional label, which works both way incidentally, but to be blunt that's not a vendor's problem. The vendor is obligated to preserve, promote and grow his/her business. Not preserving someone else’s business, which may in fact be competition. As for putting a domestic label out of business, one would have to assume that the foreign label would be getting releases out to market first consistently. If on the other hand labels get releases out simultaneously in most cases, and consecutive release dates are distributed evenly between territories theoretically sales should even themselves out.

Actually, I’ve noticed most, if not all, Euro/Japanese labels kicking out their releases early on a consistent basis for quite a while now, and that is why this whole fireball is going down in the first place. You are correct though, if all the territories released there albums consecutively, with the same amount of material, it would probably even itself out, and that would do away with a lot of the hardship and stress. Personally, I would love t osee that day come.
But, that will probably never happen anytime soon, because every lable wants to get their version of their product to every fan of that particular band to justify their existence and expenses as a business. most of us, including myself, may not like it, but It’s not wrong or illegal, it’s just business. :Smug: Some labels are just more honest and ethical than others, and they end up getting the shaft due to that.