I had no idea "Where Did I Lose Your Love" was on

[SherriBerry]

They have said before they don't need to sell music as it's less than 10% of their business and they actually lose money on these exclusive deals (Journey, AC DC, Eagles). They just do them to get people into the store. Notice none of the artists have been offered a second go around, which means Journey will probably have to find a new distributor for their next album, which would hopefully mean they can hook up with Itunes.

In all fairness, none of them are ready to do another CD. Journey could be close, but I imagine the deals are taken one at a time. I sorta doubt Journey will be back with WalMart, but I can't rule it out yet either.

I think once Walmart captures the attention of that artist's fans and gets them in the store, they move on to the next artist. Revelation was a lossleader, a product to get people into the store to hopefully buy enough other stuff to offset the 5 dollars per package loss Walmart incurred from the album. Garth brooks was the start of it, However now that Bruce Springsteen made a big stink about it (after he got paid of course) I think we won't see so much of it in the future. Just my opinion of course.

Where did you hear that Walmart loses $5 per package sold? That seems outrageously false to me. Besides, why would they stand to lose money when they initially thought that 250,000 printed copies was going to be enough. Seems to me that they would have approached a Miley Cyrus or some other mega-selling artist. I don't think that $5 shit is true. But I will say this...I have a co-worker who's been trying to find it for 2 weeks and can't. Tried 2 or 3 Walmarts. Seems hard to find these days. Weird.

It was a three disc package, walmart loses around two dollars per disc. Theses are known as loss leaders. They know they will lose money on them but the stratagy is the buzz and extra store traffic surrounding the release will bring in people who will end up bying other stuff wich will not only cover the loss but create profit also.
It is not sold as an impulse item. It is advertised and hyped to get you into the store and hopefully gets you to spend money on other items in the store that cost a lot more. Walmart has discussed this at length. Walmart doesn't care if it's in stock now because they already got the initial wave of fans into the store when it released. Just like they did with the Eagles and AC DC. Why would they keep pressing new ones to put in stock after the initial wave, it means nothing to them now.. They've already talked about getting out of selling music cds altogether as they don't need it. It's less than10 percent of their business.

Thanks, for the explanation, GB. However, I think you're way off. These CD's didn't cost fucking squat to produce. Journey made $7 per package sold. No way it cost Walmart more than $4.88 to produce the 3 discs. Mulitply $4.88 X 250,000 (the initial amount of printed packages) and you have a budget that is more than enough to cover the 3 discs. Break it down...the re-records: Done at JC's house for free and printed for what...25 cents each? The DVD: filmed by Nocturne, a company Neal owns/owned. Done for dirt cheap. A good DVD, but nothing more. No extras...the bare minimum. Revelation Disc 1: Here's where all the money went. Quality studio time, multiple takes and you have to pay Shirley. But when it's all said and done there was at least enough in the budget to break even. No way they took a $5 bath...no fucking way. Not even close.

You're assuming JC did the producing for free, but wouldn't he be entitled to a producing fee? The fact that he did it at his home studio doesn't mean it was free, so unless you were told that specifically, that's an unrealistic assumption. Neal only owns part of Nocturne, and there is no reason Herbie Herbert should take a loss on his end of the profits, so while they may have worked out a good deal, Nocturne wouldn't have filmed the DVD for cost unless the company got a percentage, so dirt cheap is another unlikely assumption. A few dollars per unit on a lossleader is nothing - I've worked in retail for much smaller companies where we lost a couple of dollars per unit item on a special, but it's worth the business it brings in. And a major corporation like Wal-Mart needs to have writeoffs for tax purposes, so there are more angles to this.

[Tito]

Yikes. Too bad Walmart doesn't have a stipulation that the song can be released to Itunes after so many months. Kind of makes it tough on the band to sell stuff. If they were smart, they'd have an Iframe built into the Journey site that flies in the Walmart order page. Basically, it'd look like you were ordering it ON the Journey site, but you're actually doing it through Walmart.

WHY don't they do that????

I like how Amazon has the one click to incorporate into itunes.
Walmart was going to update their servers last year and told people if they hadn't backed up their stuff they were out of luck. Enough people complained to the point where Walmart delayed the action but still went through with it. They have said before they don't need to sell music as it's less than 10% of their business and they actually lose money on these exclusive deals (Journey, AC DC, Eagles). They just do them to get people into the store. Notice none of the artists have been offered a second go around, which means Journey will probably have to find a new distributor for their next album, which would hopefully mean they can hook up with Itunes.

AC/DC released theirs late last years, Journey is still less than a year old and apparently still releasing singles (albeit with little success), and the Eagles that was their last record. As far as the second go around, time will tell. It's still too early to tell.

[Tito]

They have said before they don't need to sell music as it's less than 10% of their business and they actually lose money on these exclusive deals (Journey, AC DC, Eagles). They just do them to get people into the store. Notice none of the artists have been offered a second go around, which means Journey will probably have to find a new distributor for their next album, which would hopefully mean they can hook up with Itunes.

In all fairness, none of them are ready to do another CD. Journey could be close, but I imagine the deals are taken one at a time. I sorta doubt Journey will be back with WalMart, but I can't rule it out yet either.

I think once Walmart captures the attention of that artist's fans and gets them in the store, they move on to the next artist. Revelation was a lossleader, a product to get people into the store to hopefully buy enough other stuff to offset the 5 dollars per package loss Walmart incurred from the album. Garth brooks was the start of it, However now that Bruce Springsteen made a big stink about it (after he got paid of course) I think we won't see so much of it in the future. Just my opinion of course.

Wal Mart did not lose $5 per package. There's no way they would lose that much.

[Tito]

Yikes. Too bad Walmart doesn't have a stipulation that the song can be released to Itunes after so many months. Kind of makes it tough on the band to sell stuff. If they were smart, they'd have an Iframe built into the Journey site that flies in the Walmart order page. Basically, it'd look like you were ordering it ON the Journey site, but you're actually doing it through Walmart.

WHY don't they do that????

I like how Amazon has the one click to incorporate into itunes.
Walmart was going to update their servers last year and told people if they hadn't backed up their stuff they were out of luck. Enough people complained to the point where Walmart delayed the action but still went through with it. They have said before they don't need to sell music as it's less than 10% of their business and they actually lose money on these exclusive deals (Journey, AC DC, Eagles). They just do them to get people into the store. Notice none of the artists have been offered a second go around, which means Journey will probably have to find a new distributor for their next album, which would hopefully mean they can hook up with Itunes.

Seems that Journey will need to reevaluate the distribution channels. The situation with Walmart, from what I understand, is that the artists retain a much higher amount of profit, as compared to a major label like Sony. On the other hand, it ties Journey's hands in many ways. It's keeping music from being released that should have been mainstream radio by now. Curse and blessing situation. The other thing I don't know is what their contractual obligations are with Walmart regarding future projects.

They made a lot of money and got a platinum album out of the deal and a very, very modest hit single. They're happy. They don't need to sell any more albums or have hit singles to their legacy. That's a bonus right now.

[stevew2]

They have said before they don't need to sell music as it's less than 10% of their business and they actually lose money on these exclusive deals (Journey, AC DC, Eagles). They just do them to get people into the store. Notice none of the artists have been offered a second go around, which means Journey will probably have to find a new distributor for their next album, which would hopefully mean they can hook up with Itunes.

In all fairness, none of them are ready to do another CD. Journey could be close, but I imagine the deals are taken one at a time. I sorta doubt Journey will be back with WalMart, but I can't rule it out yet either.

I think once Walmart captures the attention of that artist's fans and gets them in the store, they move on to the next artist. Revelation was a lossleader, a product to get people into the store to hopefully buy enough other stuff to offset the 5 dollars per package loss Walmart incurred from the album. Garth brooks was the start of it, However now that Bruce Springsteen made a big stink about it (after he got paid of course) I think we won't see so much of it in the future. Just my opinion of course.

Walmarts havin a $5.00 special on snicker mini s this week dickbag

Wal Mart did not lose $5 per package. There's no way they would lose that much.

[Tito]

It was a three disc package, walmart loses around two dollars per disc. Theses are known as loss leaders. They know they will lose money on them but the stratagy is the buzz and extra store traffic surrounding the release will bring in people who will end up bying other stuff wich will not only cover the loss but create profit also.

Outdated and inaccurate information. To my surprise, they were losing $2 dollars a disc on major label releases 5 years ago. However, since then they put presure on the major labels to lower their price, which they did. Furthermore, we are arguing apples and oranges because we are not dealing with a major label. The label is Walmart, there is not a middle man. That eliminated a lot of expenses, which makes the product breakeven or even a small profit.

It is advertised and hyped to get you into the store and hopefully gets you to spend money on other items in the store that cost a lot more. Walmart has discussed this at length. Walmart doesn't care if it's in stock now because they already got the initial wave of fans into the store when it released. Just like they did with the Eagles and AC DC. Why would they keep pressing new ones to put in stock after the initial wave, it means nothing to them now.. They've already talked about getting out of selling music cds altogether as they don't need it. It's less than10 percent of their business.

Think about it. Lose a few bucks to make some potentially bigger bucks.

The advertising was minimal. It was nothing more than a very small part of their Sunday flyer. Secondly, it is still in stock and at least three Walmarts I've visited it is still in prevelant places and multiple locations in the CD section. I doubt that is a major traffic driver now. They have talked about getting out of the music selling business, but a major part of that is for negotiating purposes with the record labels. Music sales are roughly 2% of their business.

[Don]

They have said before they don't need to sell music as it's less than 10% of their business and they actually lose money on these exclusive deals (Journey, AC DC, Eagles). They just do them to get people into the store. Notice none of the artists have been offered a second go around, which means Journey will probably have to find a new distributor for their next album, which would hopefully mean they can hook up with Itunes.

In all fairness, none of them are ready to do another CD. Journey could be close, but I imagine the deals are taken one at a time. I sorta doubt Journey will be back with WalMart, but I can't rule it out yet either.

I think once Walmart captures the attention of that artist's fans and gets them in the store, they move on to the next artist. Revelation was a lossleader, a product to get people into the store to hopefully buy enough other stuff to offset the 5 dollars per package loss Walmart incurred from the album. Garth brooks was the start of it, However now that Bruce Springsteen made a big stink about it (after he got paid of course) I think we won't see so much of it in the future. Just my opinion of course.

Wal Mart did not lose $5 per package. There's no way they would lose that much.

You do know all this talk about losing money and the J-Boyzzzzzzzzzz references were part of plot to get you and SJ back into the fold over here, right?

(I actually hate the term JBoys and apparently, SJ agrees with me )

[stevew2]

It was a three disc package, walmart loses around two dollars per disc. Theses are known as loss leaders. They know they will lose money on them but the stratagy is the buzz and extra store traffic surrounding the release will bring in people who will end up bying other stuff wich will not only cover the loss but create profit also.

Outdated and inaccurate information. To my surprise, they were losing $2 dollars a disc on major label releases 5 years ago. However, since then they put presure on the major labels to lower their price, which they did. Furthermore, we are arguing apples and oranges because we are not dealing with a major label. The label is Walmart, there is not a middle man. That eliminated a lot of expenses, which makes the product breakeven or even a small profit.

It is advertised and hyped to get you into the store and hopefully gets you to spend money on other items in the store that cost a lot more. Walmart has discussed this at length. Walmart doesn't care if it's in stock now because they already got the initial wave of fans into the store when it released. Just like they did with the Eagles and AC DC. Why would they keep pressing new ones to put in stock after the initial wave, it means nothing to them now.. They've already talked about getting out of selling music cds altogether as they don't need it. It's less than10 percent of their business.

Think about it. Lose a few bucks to make some potentially bigger bucks.

The advertising was minimal. It was nothing more than a very small part of their Sunday flyer. Secondly, it is still in stock and at least three Walmarts I've visited it is still in prevelant places and multiple locations in the CD section. I doubt that is a major traffic driver now. They have talked about getting out of the music selling business, but a major part of that is for negotiating purposes with the record labels. Music sales are roughly 2% of their business.

You loser, I bet you go in Walmart everyday just to see that there are 2 Cds left instead of three,them you get a bag of mini s on the way out you queer

[Don]

It was a three disc package, walmart loses around two dollars per disc. Theses are known as loss leaders. They know they will lose money on them but the stratagy is the buzz and extra store traffic surrounding the release will bring in people who will end up bying other stuff wich will not only cover the loss but create profit also.

Outdated and inaccurate information. To my surprise, they were losing $2 dollars a disc on major label releases 5 years ago. However, since then they put presure on the major labels to lower their price, which they did. Furthermore, we are arguing apples and oranges because we are not dealing with a major label. The label is Walmart, there is not a middle man. That eliminated a lot of expenses, which makes the product breakeven or even a small profit.

It is advertised and hyped to get you into the store and hopefully gets you to spend money on other items in the store that cost a lot more. Walmart has discussed this at length. Walmart doesn't care if it's in stock now because they already got the initial wave of fans into the store when it released. Just like they did with the Eagles and AC DC. Why would they keep pressing new ones to put in stock after the initial wave, it means nothing to them now.. They've already talked about getting out of selling music cds altogether as they don't need it. It's less than10 percent of their business.

Think about it. Lose a few bucks to make some potentially bigger bucks.

The advertising was minimal. It was nothing more than a very small part of their Sunday flyer. Secondly, it is still in stock and at least three Walmarts I've visited it is still in prevelant places and multiple locations in the CD section. I doubt that is a major traffic driver now. They have talked about getting out of the music selling business, but a major part of that is for negotiating purposes with the record labels. Music sales are roughly 2% of their business.

Those must have been three different Walmarts from the one SJ's buddy visited.

[Tito]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

[Tito]

You loser, I bet you go in Walmart everyday just to see that there are 2 Cds left instead of three,them you get a bag of mini s on the way out you queer

Nope, just once a week.

[stevew2]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

How in the fuck do you know that?

[Don]

You loser, I bet you go in Walmart everyday just to see that there are 2 Cds left instead of three,them you get a bag of mini s on the way out you queer

Nope, just once a week.

I'm thinking Target or Bestbuy exclusive next release, what say you?

[Tito]

Let's see here...Revelation sold 600,000 packages. If Journey made $7 per disc (and that is what has been reported) that leaves $4.88 X 600,000, which is a 2.93 MILLION dollar budget. They did not lose money, fuckers. Rhi-tard and Dumbot, just give this one up.

PS Rhiannon, Tito said he's gonna "Chris Brown" your ass when he logs on tomorrow.

Do musician unions royalties and song writing royalties for Perry and and Jeremey get paid by Walmart or Journey?
Walmart paid for all advertising and promotion, not Frontline. How much did that cost?

Not sure but I will be willing to be it came out of Journey's $7. I can't see Walmart paying $7 plus royalties,etc. The advertising/promotion was minimal as was distribution.

[Tito]

You loser, I bet you go in Walmart everyday just to see that there are 2 Cds left instead of three,them you get a bag of mini s on the way out you queer

Nope, just once a week.

I'm thinking Target or Bestbuy exclusive next release, what say you?

They just signed Prince last week.

[Rhiannon]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

I KNOW that. I do this for a living, I know what manufacturing 1.8 million discs costs at the plants. I was throwing in an example of how the industry is combatting the economy to stay profitable. I by no means was saying Wal-Mart can only get a cpu of .35 on a CD. Discussion over, there's no way Wal-Mart turns a profit on these, they're just bait items to get foot traffic in the store. End of story.

[stevew2]

You loser, I bet you go in Walmart everyday just to see that there are 2 Cds left instead of three,them you get a bag of mini s on the way out you queer

Nope, just once a week.

If you say so,I can see spending hours in the craft section where they sell artificial flowers and shit

[stevew2]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

I KNOW that. I do this for a living, I know what manufacturing 1.8 million discs costs at the plants. I was throwing in an example of how the industry is combatting the economy to stay profitable. I by no means was saying Wal-Mart can only get a cpu of .35 on a CD. Discussion over, there's no way Wal-Mart turns a profit on these, they're just bait items to get foot traffic in the store. End of story.

See Tito RI know s her shit, you are just a dumb fuck that likes Friga

[Tito]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

How in the fuck do you know that?

If Rhiannon's (Rhianna) company is selling CDs at .35 a piece, I guarantee you Walmart is buying them for a lot less than that.

[Tito]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

I KNOW that. I do this for a living, I know what manufacturing 1.8 million discs costs at the plants. I was throwing in an example of how the industry is combatting the economy to stay profitable. I by no means was saying Wal-Mart can only get a cpu of .35 on a CD. Discussion over, there's no way Wal-Mart turns a profit on these, they're just bait items to get foot traffic in the store. End of story.

Worst case scenario, they are breaking even or losing a few cents (not dollars) per package.

[stevew2]

By selling popular CD titles at a loss, Wal-Mart, Target, and other retailers have traded the easy profits on CDs--which formerly kept music stores in business--into store advertising and then wrote it off as a business expense.

That's it. Right now the big thing in disc production is "recession-proofing". I just designed an ad that's in this month's Illinois Entertainer for our company to run 1,000 CDs for $350. Completely unheard of. We're all taking a hit with the economy, so in order to stay profitable we have to practically give away things to get the "sell" and make up the difference with things like print and packaging, which between the market and the new eco-designs (I had a client request something on recycled stock with vegetable or soy based inks the other day... ) that's not exactly easy itself.

So for a major distributor incurring more expense from desktop publishing to assembly to sales floor staff to sell a product like Revelation for dirt... DIRT cheap, you know they're just using it as a promo. Even smaller artists are printing up 1 or 2 M of their own albums and tossing them about at gigs just to get fans to keep coming out and paying that cover charge.

Walmart is spending less than 35 cents a CD/DVD. You are talking about 1 thousand CDs. Walmart is dealing with hundreds of thousands, if not millions of CDs. They get a better price.

How in the fuck do you know that?

If Rhiannon's (Rhianna) company is selling CDs at .35 a piece, I guarantee you Walmart is buying them for a lot less than that.

Frigas Windy Shitties Cd is worth half of that bobbler

[Tito]

The bigger issue is, Who gives a fuck. All this was, was another attempt to knock Journey. Nevermind, every other artist has to go through the same shit but because Journey was successful, there's a problem. Again, the attempt failed. Try again.

[stevew2]

The bigger issue is, Who gives a fuck. All this was, was another attempt to knock Journey. Nevermind, every other artist has to go through the same shit but because Journey was successful, there's a problem. Again, the attempt failed. Try again.

Right WAS

[Don]

The bigger issue is, Who gives a fuck. All this was, was another attempt to knock Journey. Nevermind, every other artist has to go through the same shit but because Journey was successful, there's a problem. Again, the attempt failed. Try again.

Who are you talking to?
My whole thing was pointing out Walmart's business stratagy and why I don't think Journey will/should use them for their next release ((inventory issues after intial run, no Itunes/Amazon download access).

[stevew2]

The bigger issue is, Who gives a fuck. All this was, was another attempt to knock Journey. Nevermind, every other artist has to go through the same shit but because Journey was successful, there's a problem. Again, the attempt failed. Try again.

Who are you talking to?
My whole thing was pointing out Walmart's business stratagy and why I don't think Journey will/should use them for their next release ((inventory issues after intial run, no Itunes/Amazon download access).

Shito was talkin to himself as always

[Tito]

This is from the Rolling Stone article 4 1/2 years ago.

http://www.rollingstone.com/news/story/ ... nts_10_cds

A couple of points from the article.

Along with other giant retailers such as Best Buy and Target, Wal-Mart willingly loses money selling CDs for less than $10 (they buy most hit CDs from distributors for around $12). These companies use bargain CDs to lure consumers to the store, hoping they might also grab a boombox or a DVD player while checking out the music deals. [Tito's comment: This is stupid if true. People don't buy boom boxes/ghetto blasters and DVD players every visit. That's a once every 2, 3, or 4 year purchase].

Less-expensive CDs are something consumers have been demanding for years. But here's the hitch: Wal-Mart is tired of losing money on cheap CDs. It wants to keep selling them for less than $10 -- $9.72, to be exact -- but it wants the record industry to lower the prices at which it purchases them. Last winter, Wal-Mart asked the industry to supply it with choice albums -- from new releases from alternative rockers the Killers to perennial classics such as Beatles 1 -- at favorable prices. According to music-industry sources, Wal-Mart executives hinted that they could reduce Wal-Mart's CD stock and replace it with more lucrative DVDs and video games.
"This wasn't framed as a gentle negotiation," says one label rep. "It's a line in the sand -- you don't do this, then the threat is this." (Wal-Mart denies these claims.) As a result, all of the major labels agreed to supply some popular albums to Wal-Mart's $9.72 program. "We're in such a competitive world, and you can't reach consumers if you're not in Wal-Mart," admits another label executive.
Tensions are not as high now as they were last winter, but making sure Wal-Mart is happy remains one of the music industry's major priorities. That's because if Wal-Mart cut back on music, industry sales would suffer severely -- though Wal-Mart's shareholders would barely bat an eye. While Wal-Mart represents nearly twenty percent of major-label music sales, music represents only about two percent of Wal-Mart's total sales. "If they got out of selling music, it would mean nothing to them," says another label executive. "This keeps me awake at night."ep.

This breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail shows where the money goes for a new album with a list price of $15.99.
$0.17 Musicians' unions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists' royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead

There is no label, so you can subtract 4.61 right there. I would bet the musician union, publishing, royalties are a part of Journey's $7. So that's another $2.59 right there. Worst case scenario they paid for the union and publishing royalties, so maybe they ate 99 cents, there is no way they paid Journey $7 PLUS artist royalties and I highly doubt they paid the other stuff too. Also, what does $4.61 and $2.59 add up to: $7.20, could that be the $7 they pay to Journey?


$2.40/CD for marketing/promotion is basically eliminated. All it was was a little spot in the Walmart flyer in the Sunday paper. I will allocate for that and some other minor promotion and say 10 cents/CD (and I'm being generous with that). That saves another $2.30. So far, they have saved/eliminated a bare minimum of $6.91 and upwards of $9.50. That doesn't include lower cost for distribution and retail overhead as well.


Think about this also, they were paying $12 to purchase CDs (I can't believe it is that much but anyway) back in the day. They charged $11.88 for Journey plus they eliminated the middle man. So, $11.88 would roughly be a breakeven for them under the old model. Yes it's 2CDs and a DVD,but even with the higher cost they still are breaking even at worse.

[Tito]

The bigger issue is, Who gives a fuck. All this was, was another attempt to knock Journey. Nevermind, every other artist has to go through the same shit but because Journey was successful, there's a problem. Again, the attempt failed. Try again.

Who are you talking to?
My whole thing was pointing out Walmart's business stratagy and why I don't think Journey will/should use them for their next release ((inventory issues after intial run, no Itunes/Amazon download access).

Shito was talkin to himself as always

I'm talking to everyone.

[Rhiannon]

If Rhiannon's (Rhianna) company is selling CDs at .35 a piece, I guarantee you Walmart is buying them for a lot less than that.

At a quantity of 1M (that's thousand). Again, my point in that had nothing to do with the cpu of Walmart's disc production, you missed the point in that TWICE. Walmart probably gets them for around .125 and that probably doesn't include films, plates, glass mastering, and freight. Even if it is outsourced to wherever. That's just what they cost. Our .35 is a markup of what we pay to the plant, but as the quantities increase we reduce the markup to allow for price breaks, as is standard in this industry. And I'm not trying to knock Journey or Wal-Mart in any way... this is how it's done and for some reason you seem to take gross profit on Revelation personally.

[bluejeangirl76]

and for some reason you seem to take gross profit on Revelation personally.

Its a valid concern, Rhiannon. Whether or not Jon Cain is going to be able to continue to afford the facial grooming implements required for proper soul-patch upkeep is something I lose sleep over on a bi-weekly basis.

[Tito]

If Rhiannon's (Rhianna) company is selling CDs at .35 a piece, I guarantee you Walmart is buying them for a lot less than that.

At a quantity of 1M (that's thousand). Again, my point in that had nothing to do with the cpu of Walmart's disc production, you missed the point in that TWICE. Walmart probably gets them for around .125 and that probably doesn't include films, plates, glass mastering, and freight. Even if it is outsourced to wherever. That's just what they cost. Our .35 is a markup of what we pay to the plant, but as the quantities increase we reduce the markup to allow for price breaks, as is standard in this industry. And I'm not trying to knock Journey or Wal-Mart in any way... this is how it's done and for some reason you seem to take gross profit on Revelation personally.

I don't take the gross profit personally, I take the net profit personally.

I didn't miss anything, I think we're saying the samething on the price of the disc.