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22.06.12MusicWeek 5
DOWNLOAD STORE ‘JUST THE START’ • UK SUPERMARKET QUESTIONS CURRENT LP PRICES
Sainsbury’s: we’re not done with digital music
RETAIL BY TIM INGHAM
T
esco may have grabbed the headlines in the past week with its audacious
£10.8m buyout of streaming service We7 – but it’s not the only UK supermarket with significant aspirations in digital music. Sainsbury’s has told Music
Week that its new MP3 store is just the first step in the education of its consumer base when it comes to digital content – and that it is fully aware of streaming content’s role in the future of retail. The new service, hosted on the
Sainsbury’s Entertainment website, was launched last month. It provides customers with access to over 2.3 million downloads, with singles starting
at 89p and ‘Deal of the week’ albums for £4.99. Customers gain Nectar points after downloading. Tesco launched its download
service as far back as 2004, whilst Amazon unveiled its DRM-free AmazonMP3 platform in 2007. “Whilst not the first to market, we have been very
careful to launch an MP3 service that works on all levels for our customers,” said Sainsbury’s Entertainment category manager Matt Newman. “To this end, our
‘Downloading Made Easy’ message is as important as the market leading pricing. “We are delighted with the
reception so far and will continue
to utilise our significant physical store business to guide our customers and Sainsbury’s colleagues online as shopping habits evolve. However, an MP3 store is just the start of our digital aspirations for the entertainment category.” When asked how traditional
retailers could compete with the growing streaming market, Newman added: “It is impossible to ignore the impact and ever- growing desirability of ‘consumption’ over ‘ownership’ - smarter retailers should be embracing these newer models as an opportunity. “There is a defined place in
the market where any number of streamed music iterations can complement a more ‘traditional’ physical music offer. You have to be clear on what you’re presenting to your customers
“An MP3 store is just the start of our digital aspirations for the
entertainment category” MATT NEWMAN, SAINSBURY’S
and be creative with your commercial execution.” Despite a keenness to
work with the record industry on its digital service, Newman noted that the current SRP for chart albums may need rethinking. “A tough market demands
focused, strategic relationships with our partners and it’s imperative we continue to face into the challenges and subsequent opportunities together,” he said. “However, if the industry wants to sustain a physical in-store business, they need to facilitate driving forward sales. Whilst price is not the only issue and the average selling price has come down at a total level, the price of a frontline chart CD is still £9.99, as it was 10 years ago, which seems out of kilter.”
Amanda Palmer Cooks up label deal
She raised over $1 million through crowd-funding – and now Amanda Palmer has signed a unique partnership with Cooking Vinyl. Although her new LP,
Theatre Is Evil, will be globally released through Palmer’s own label, 8ft Records, Cooking will handle the distribution, project management, marketing and promotional services across the UK and Europe. Palmer’s requests to be
dropped by Warner-owned Roadrunner were granted two years ago. Her new deal sees her retain 100% of her rights and make the lion’s share of the money, as well as maintaining full artisticcontrol over the campaign. Her management team, Girlie Action, will handle all label functions in the US. After the European album
release on September 10, Palmer will tour for two weeks in the territory and return for
a more extensive tour in March 2013. Cooking Vinyl founder
Martin Goldschmidt said: "I am proud to welcome Amanda to Cooking Vinyl, as well as being a fantastic artist she is very forward-thinking in her approach to the business. “Our relationship is not a
traditional record deal and reflects her ethics. She joins The Cult to become our second refugee from Roadrunner Records."
EMI Music Publishing signs with James Grant Group
EMI Music Publishing has struck a unique partnership with a UK entertainment management company to create their own production music library. The James Grant Group’s
music library will be launched on PLAY - EMI Music Publishing’s global platform for production music for TV, radio and advertising.
The library will provide music
for use across broadcast and commercial projects with EMI Production Music supplying creative support plus full administration, distribution and marketing. The James Grant Music
Library will offer content from a network of composers and producers who will create music
across a range of genres and mirror the most up-to-date record label releases. TV and film producers will be able to call on this network of composers to create bespoke music to meet specific project requirements. Jonathan Channon, EVP,
media and business development, EMI Music Publishing commented: “Our
businesses will complement each other to deliver mutual benefits and opportunities for our respective client bases. We look forward to a long and productive partnership with them” Richard Northen, A&R
director James Grant Music: “James Grant Music is fast establishing itself as a leading music production provider for
the commercial and TV sectors, especially with its work with the independent production community. Being on the EMI Play network will also enable us to reach more producers internationally, helping them with their music needs and introducing them to the James Grant Group’s wider proposition of services.”