Labels Ramp Up Vinyl Campaigns To Meet Demand

It may have seemed like a fad at first, but the resurgence of vinyl is now turning into a nice niche business for the major labels. With EMI's announcement that it would reissue eight classic albums in the format, all four majors are now onboard the vinyl bandwagon.

EMI will release two Coldplay albums, four Radiohead titles and Steve Miller's "Greatest Hits" on August 19. Universal Music Enterprises will release 20 albums on vinyl this month and an additional 20 at the end of August, while Warner Music Group will issue 24 to 30 albums from its catalog and 10 to 12 new releases from September through the end of the year, according to executives at those companies.

In the independent camp, RED labels will have several hundred vinyl titles by the end of the year, half of which are new releases, RED vice president of indie sales/marketing Doug Wiley said. One of RED's labels, Metal Blade, is reissuing its classic Slayer catalog in deluxe versions, all on colored vinyl with hand-designed blood splatterings on it, Wiley said.

Indie retail started the party, but now some of the chains are carrying vinyl too. In addition to Fred Meyer and Borders, Best Buy has said publicly that it will experiment with carrying LPs.

EMI Music Catalog vice president of A&R and creative Jane Ventom said that the company has always been into vinyl, "but we are getting more into it." She said the move is in response to consumer demand from the iPod generation, baby boomers and audiophiles.

"Music is becoming a social action again," Ventom said. "The kids are now listening to music with their mates instead of on headphones." She added that vinyl allows them to "hear music in its true form."

"People are going back to reliving the way they used to listen to music and they realize that they missed the (album cover) artwork and what a pleasurable listening experience it is," Ventom said.


SOUND MATTERS

One of the most important elements to issuing vinyl is sound quality, especially in the MP3 age. That's why Warner Bros. will relaunch its becausesoundmatters.com Web site, which touts and sells vinyl and may start offering high-resolution MP3s, according to Warner Bros./Reprise Records executive VP Tom Biery, who heads the label's radio promotion team and oversees its vinyl initiative.

Warner Bros. reissued the first two Metallica albums -- "Kill 'Em All" and "Ride the Lighting" -- on vinyl, and both have passed the 4,000-unit sales mark, according to Nielsen SoundScan. On July 15, the company released "Master of Puppets" on vinyl in two versions.

In September, the label plans to issue a 50th anniversary archive series of vinyl releases, including James Taylor's "Mud Slide Slim," a Rickie Lee Jones album, a Marty Paich album and the Red Hot Chili Peppers' "Blood Sugar Sex Magik." Most of the albums that are issued on vinyl also come with an enclosed CD, Biery said.

The increased interest in vinyl is putting a strain on the handful of pressing plants still left from the format's heyday. "Our vinyl is always late because it gets bumped," Redeye co-owner Tor Hansen said.

"I still have eight machines, and I am currently running at about 75 percent capacity," said plant manager Dave Jump of Nashville's United Records.

The limited pressing network often makes it hard to get vinyl out on the same release date as the CD, but when the stars align, sales can be significant. Warner Bros. offered vinyl and CD on the same day when issuing the Raconteurs' "Consolers of the Lonely" in March; the album sold 42,000 units in its first week, and 3 percent of sales came from the vinyl version.

Looking forward, executives said they want to be aggressive and practical with their vinyl campaigns.

"Everything shouldn't be released on vinyl," WEA (Warner-Elektra-Atlantic) vice president of catalog sales Steve Corbin said. "We want to be selective and smart about what we put out. (But) it's interesting that the consumer sees the value and is willing to pay for vinyl."

[Reuters]

Retailers giving vinyl records another spin

PORTLAND, Oregon (AP) -- It was a fortuitous typo for the Fred Meyer retail chain.

The best-seller so far at Fred Meyer is The Beatles album "Abbey Road."

This spring, an employee intending to order a special CD-DVD edition of R.E.M.'s latest release "Accelerate" inadvertently entered the "LP" code instead. Soon boxes of the big, vinyl discs showed up at several stores.

Some sent them back. But a handful put them on the shelves, and 20 LPs sold the first day.

The Portland-based company, owned by The Kroger Co., realized the error might not be so bad after all. Fred Meyer is now testing vinyl sales at 60 of its stores in Oregon, Washington and Alaska. The company says, based on the response so far, it plans to roll out vinyl in July in all its stores that sell music.

Other mainstream retailers are giving vinyl a spin too. Best Buy is testing sales at some stores. And online music giant Amazon.com, which has sold vinyl for most of the 13 years it has been in business online, created a special vinyl-only section last fall.

The best-seller so far at Fred Meyer is The Beatles album "Abbey Road." But musicians from the White Stripes and the Foo Fighters to Metallica and Pink Floyd are selling well, the company says.

"It's not just a nostalgia thing," said Melinda Merrill, spokeswoman for Fred Meyer. "The response from customers has just been that they like it, they feel like it has a better sound."

According to the Recording Industry Association of America, manufacturers' shipments of LPs jumped more than 36 percent from 2006 to 2007 to more than 1.3 million. Shipments of CDs dropped more than 17 percent during the same period to 511 million, as they lost some ground to digital formats.

The resurgence of vinyl centers on a long-standing debate over analog versus digital sound. Digital recordings capture samples of sound and place them very close together as a complete package that sounds nearly identical to continuous sound to many people.

Analog recordings on most LPs are continuous, which produces a truer sound -- though, paradoxically, some new LP releases are being recorded and mixed digitally but delivered analog.

Some purists also argue that the compression required to allow loudness in some digital formats weakens the quality as well.

But it's not just about the sound. Audiophiles say they also want the format's overall experience -- the sensory experience of putting the needle on the record, the feeling of side A and side B and the joy of lingering over the liner notes.

"I think music products should be more than just music," said Isaac Hudson, a 28-year-old vinyl fan standing outside one of Portland's larger independent music stores.

The interest seems to be catching on. Turntable sales are picking up, and the few remaining record pressers say business is booming.

But the LP isn't going to muscle out CDs or iPod soon.

Nearly 450 million CDs were sold last year, versus just under 1 million LPs, according to Nielsen SoundScan. Based on the first three months of this year, Nielsen says vinyl album sales could reach 1.6 million in 2008.

"I don't think vinyl is for everyone; it's for the die-hard music consumer," said Jay Millar, director of marketing at United Record Pressing, a Nashville based company that is the nation's largest record pressing plant.

Many major artists -- Elvis Costello, the Raconteurs and others -- are issuing LPs and encouraging fans to check out their albums on vinyl. On Amazon.com, one of the best-selling LPs is Madonna's latest album, "Hard Candy".

Some artists package vinyl and digital versions of their music together, including offers for free digital downloads along with the record.

"We've definitely had some talks with the major retailers about exclusives on the manufacturing end," Millar said of United Record Pressing, which focuses primarily on independent recordings.

An avid music fan himself, Millar says he has moved to vinyl in recent years.

"Once I got my first iPod ... I'm looking at my wall of CDs and trying to justify it," Millar said. "The things I like -- the artwork, the liner notes, the sound quality -- it dawns on me, those are things I like better on vinyl." He welcomed back the pops and clicks, even some of the scratches.

"I like that fact that it's imperfect in a lot of ways, live music is imperfect too," Millar said.

Independent music stores, which have been the primary source of LPs in recent years, say many fans never left the medium.

"People have been buying vinyl all along," said Cathy Hagen, manager at 2nd Avenue Records in Portland. "There was a fairly good supply from independent labels on vinyl all these years. As far as a resurgence, the major labels are just pressing more now."

In this game, big retailers aren't necessarily competing head to head with independent sellers' regular clientele of nostalgic baby boomers, independent label fans and turntable DJs.

"I cannot see that Best Buy or Fred Meyer would order the same things we would," Hagen said. "They aren't going to be ordering the reggae, funk, punk or industrial music."

[CNN]