Working across both the digital and physical markets, I am frequently asked my thoughts on the future of physical music sales. While I believe a physical market will survive for music, I also often point to services like Amazon Disc on Demand as an interesting space to watch. Many questions arise over this service, and I aim in the below to address some of the more common questions I’m asked.
What exactly is Amazon Disc on Demand?
Amazon Disc on Demand uses the digital files that are delivered for the Amazon MP3 store to print a CD or DVD on demand for customers who order a physical copy. The transaction counts as a digital sale, but results in a physical copy.
What are the benefits of Disc on Demand?
No stock is held. You are able to sell to customers who prefer physical copies of releases without the exposure of having hundreds of units of stock sitting in warehouses across the world when demand may not justify that level of exposure.
What releases are good for Disc on Demand?
If the physical release of a title does not exist in the market, Disc on Demand provides a good option to reach customers who prefer physical units but may otherwise be missed. Disc on Demand is a particularly good option for older catalogue titles on which sales have slowed to the point where the physical is deleted, or perhaps should be to save on costs of slow-moving lines. It could also be a way to test the water for developing artists and releases.
In what territories does Amazon have the Disc on Demand program?
Disc on Demand is only live for music in the US and Germany at the moment. It is to be launching in one or two “major European territories” in the near future. These territories are not confirmed, but one could likely make some educated guesses.
Can I have a booklet with a Disc on Demand release?
Disc on Demand releases do include booklets which can be 4-32 pages. However, DoD booklet artwork currently needs to be in a different format than booklets for the MP3 store. Releases via the Orchard are currently set up using a standard template, but if you have an important release for DoD with which you would like to add a more detailed booklet, please contact your Client Manager.
But isn’t the quality really poor?
The Amazon Disc on Demand program suffers from a bit of a perception problem stemming from the somewhat lesser-quality of the packages at the time the service launched. Amazon has long since improved the quality of DoD products, increasing the booklet paper weight to 130gsm. Having seen several DoD packages, the quality can be indistinguishable from many “proper” physical releases.
If CDs are being printed to order, doesn’t it take a long time for customers to receive their copy?
No — the order is immediately sent to Amazon’s printing facilities, and the CD can be shipped out within 24 hours. No additional processing time occurs.
How is the pricing set?
While Amazon reserves the right to set retail price, a vendor can specify a desired list price and a royalty is paid through on this amount when a disc is sold. Your Client Manager can assist with further information.
Do Disc on Demand titles sell?
Sales of course vary by title, but we have seen steady sales through Disc on Demand. A particular recent success story happened with Acoustic Live by Nils Lofgren. When Nils toured as part of Bruce Springsteen’s E Street Band, Acoustic Live sold over 700 units through Amazon Disc on Demand in Germany, hitting #3 on Amazon Germany’s Live Albums chart. The physical version of this title had been deleted, and Disc on Demand was able to service a market that otherwise would have been missed.
How do I have my releases delivered to Disc on Demand?
Please contact your Client Manager for further details.
Who wants to know the difference between North American and European pallets? Anyone?
If you don’t get it, it’s ok. Many aspects of physical distribution are lost in the digital world. However, some aspects of music distribution transcend format. While many labels have strong digital strategies in place, below are some of the more recurring areas where the digital world could at times learn from physical.
Timing is everything.
You can not release an album in the physical sphere with two weeks’ notice. Even if stock is manufactured, it needs time to ship to its various destinations, hit the stock room and be processed. Sell in times for physical retailers are 6-8 weeks, more in some territories. If sales information is provided late, retailers have already allocated their budgets for a release date and have moved on to the next. Exceptions happen of course. If you have the new Beyonce album, things have a way of moving faster. But if you have the release of a developing artist, proper release set up time is best heeded.
In the digital world, we can release an album with much less notice. Deliveries are faster and pitches are sent later. But what more can be achieved with a longer set up time? The most common question I receive from digital accounts is not about what is out in two weeks, but what is out in two months. Greater and more creative promotions with retailers can be set up with a longer lead time. Give time for editorial teams to live with a release ahead of street date, maybe become fans. The more time, the merrier.
Okay, timing isn’t completely everything. Music is pretty darn important.
In the physical world, retailers order stock from the distributor and are then invoiced on the units shipped to them (with some exceptions). This is what is considered to be a sale, though units can subsequently be returned. Shops are not likely to spend their limited budget to rack an album they have never heard. Promos or listening links are sent to sales teams so that they can send to key retail buyers. Retailers often see a lack of music as a signal that a label is not fully supporting a release, and they won’t support it either.
Although the editorial teams at digital retailers are not buying titles as they are sent, they still need to determine whether a release will be successful for their store and whether it is worthy of their limited and valuable editorial placements. Don’t forget that the editorial teams at digital services are also music fans. If you want them to support your release, let them hear it.
Have an artist on tour? Don’t forget to tell your distributor!
Here at The Orchard, we take pride in delivering the music of our artists and labels to all of the places around the world where it can be purchased or listened to. Once it’s delivered, we use our charm and relationships to get front-and-center placement so that our clients’ music gets the attention it deserves, and the royalties, too.
We figure that everyone enjoys pretty pictures, so we created the graphic below to highlight some of the outlets we market to. There’s a lot — which is why we have a global team located in major music markets to do the heavy lifting.
Thanks to Airene Resurreccion for the graphic.
Chicago! You’re beautiful. You’ve got great architecture, the perennial underdog baseball team that you just can’t hate on, and you’re home to arguably the most influential music website of say, the last decade or so.
Whether you drink their kool-aid religiously or absolutely hate them, Pitchfork have definitely made their mark over the years in the music community. Their annual 3-day festival which took place last weekend in Chicago’s Union Park, came complete with three stages, a lineup consisting of some of today’s most up-and-coming artists, and a host of vendors selling a variety of food, music, jewelry, and other odds and ends. The price was right too with 3-day passes going for about $120. Not bad.
Anyway, several great bands played and there are probably plenty of reviews all over the place. There’s just not enough space for that here. One small thing that felt really optimistic, especially for a person who works in music distribution, was the great record fair setup they had going where you could check out vinyl and CDs from all the record labels who had set up shop. At the same time, right across the way was a tent hosted by eMusic. Yes, that’s right folks, physical and digital partners co-existing in one space. Sweet!
Nowadays, there are more choices than ever to listen to and own music. This was a small reminder that at the center of it all bringing everyone together is, and always will be, the music. Kudos to companies out there like Pitchfork that have found ways to connect with music fans and provide fertile ground for the music community to continue to thrive on.
The 2012 NARM Convention was a huge success this year for The Orchard in terms of business closed, deals announced and goodwill spread — and the Physical Team was no exception.
In addition to meeting with top accounts, from Amazon, Transworld, AEC, Hastings and Super D to the all-important indie stores and their coalitions (including Spencer Hickman, the manager of the soon-to-be open Rough Trade Megastore in Brooklyn), the team found time to “socialize” with these same accounts as well as some of our label personalities like Michael Nobrega from Volcom and Curtis Casella from Taang! Records.
On Wednesday night, the Physical Team attended the Dodgers/Giants baseball game (where for some reason they still rooted for the Yankees, Red Sox and Phillies anyway), then we headed back to the Hyatt Regency lobby to find more old friends like Liz, Andrea and Reg from CIMS and Luann Myers from AIMS. Our favorite car music at NARM this year? A tie between the new albums by The Shrine and Kadavar (two great driving albums on Tee Pee!).
Another exciting win for the team last week: The Orchard announced the acquisition of Iris Distribution!
Check out the pics of what went down at our high-level meetings with NARM veterans such as Mark Hudson from Transworld, Record Store Day co-founder Carrie Colliton, and Larry Mansdorf and Carl Mello from Newbury Comics. There was some steak-eating, refereeing, bullying and cheering… You’ll wish you were there.
