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Online music promotions for brick and mortar stores catching on

28 October 2007 23:34 by Rich "vurbal" Fiscus | 4 comments

The music industry is trying hard to bring online content into brick and mortar stores. While traditionally, music downloads have been purchased through online transactions, new initiatives are intended to allow consumers to walk into a store and pay for downloads.

Although it may seem strange for retailers to essentially stock products from online stores, there are a lot of reasons they may be excited about this sort of distribution arrangement. Unlike standard CDs the new download cards, which are already available from retailers like the Safeway grocery chain and Starbucks, take little shelf space and since they have to be activated before use they also don't cost anything.

Industry insiders seem satisified with the product so far. "People are pleasantly surprised by the results," Sony BMG Music Entertainment senior vice president and general manager of U.S. digital sales Adam Mirabella said. "This is a new product, and the customers are just learning about it," EMI Music Marketing senior VP of sales Darren Stupak said. "So the sales can only get better."

Another upcoming product intended to connect the offline and online worlds is the ringle. A couple of songs and a credit for a ringtone are included in a single package. Music labels are hoping the ringle will energize profits from physical CD sales, although critics point to it as an example of how labels are out of touch with consumers.

As digital music technology moves from the CD to the download as the standard purchase format, brick and mortar sales also appear to be on the move - out of traditional music resellers and into other businesses where its a secondary interest. Taking the financial burden of inventory and shelf space out of the equation looks like another step in that direction.

Source: Reuters

Permalink to this article

Starbucks to give away millions of iTunes tracks (24 September 2007)

New "ringle" format re-packages CD singles (10 September 2007)

Starbucks offers free iTunes access (6 September 2007)

Apple opens Wi-Fi tunes store (5 September 2007)

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Discuss this article!
SamNz (Newbie) 29 October 2007 0:03
even though i dont buy music thanks to TPB and my friend utorrent :) there is still something about owning the real "cd". its just the feeling of owning it. :) something u can hold and not just look at so yea there really out of touch with there consumers [ + quote] This message has been edited since posting. Last time this message was edited on 29 October 2007 0:04
maryjayne (Junior Member) 29 October 2007 9:19
I like real CDs too. I enjoy having the artwork and being able to rip the CDAs into mp3 myself. I just havent bought one in over 8 years because they are overpriced, and I refuse to support the RIAA as long as they are still trying to monopolize the market. This will catch on eventually for all those people who do not want to subsribe to an internet download site or for those people who do not own a computer or are computer illiterate. As long as these songs are not wrapped with DRM, then they should sell better than online stores as long as the trend catches on. [ + quote]
pryme_H (Senior Member) 30 October 2007 0:44
Much respect to the people who actually pay for their music. This service is for you all. We lie! We cheat! We steal! [ + quote]
borhan9 (AfterDawn Addict) 4 November 2007 16:27
This is the way of the future. I do like this concept as long as you can take these songs and burn them on to a CD it will be great. You can not assume that everyone will have a portable multimedia player... [ + quote]