Hitsville’s Law

If people are talking about how a CD is being sold more than they are the actual music on the disc, let the buyer beware.

Latest candidate for Sellout Watch is Prince, who is selling his new release exclusively at Target:

The ad is for a three-CD set the retailer is offering for about twelve bucks. One of the records is by a protege; the other two are by him.

I’m happy to listen to any Prince album, but I’m pretty sure that these will be like the ones he’s been tossing out for the last ten years: interesting, but with few actual good songs you’d want to hear again.

In the Nineties, of course, Prince did the same thing—recorded too few good songs—but made it worse with a decade of petulant behavior. He tried to change his name to a symbol and fought idiotically with his record company*. Even his shows became self-indulgent and unfun**.

But faced with a potential Michael Jackson problem (expenditures of a star, but lacking star-level income), he started playing nice, doing interviews, reasserting his live chops and, not least, racheting up the marketing.

That’s why he played the Super Bowl. The Target deal is just the latest example we’ve seen of an artist figuring out ways to monetize something (generally their recordings) that really don’t have much worth any more, either aesthetically or commercially.

The sellers (the remorselessly focused Target***, in this instance, but they range from Starbucks to Wal-Mart) are using the artists as brand identifiers, so they don’t care about the quality of the product they are sluffing off on their customers. (Among other things, Prince no longer has to worry about a label person telling him his new record sucks.)

The artists get free TV promotion; I might have missed a more grievous example, but I’m pretty sure Prince dancing around in that Target-red landscape represents a new low for craven selling out by a once-serious artist. (When he was whining about Warner Bros., he wrote the word “slave” on his cheek; in this ad, he all but has a Target logo tattooed on his forehead.)

This is pure gold for the retailer, since the real point of the ads is to get folks into the stores to buy stuff other than the CD in question, which is being sold as a loss leader in any case. And, again, the retailers don’t have to worry about customer satisfaction.

In the event, the Prince set is expected to sell 150,000 to 200,000 units; that’s much less than what AC/DC or the Eagles sold, fewer even that what Axl Rose did with his execrable Best Buy deal for the quickly forgotten Chinese Democracy.

But he doesn’t care, but he’s already taken home a truckload of cash. I don’t know how the deal is structured. Under traditional label-retailer arrangements, a store might pay, in crude terms, $10 per CD wholesale and sometimes sell the discs below cost to get people into the store.

For all I know, the store could just be paying Prince a flat sum and would just take the new release off his hands. (From what I’ve read, part of the appeal to the artist is that there are no returns of unsold discs.)

So it’s hard to tell how much money the deal is ultimately worth; if the store is giving him the equivalent of $15 per unit (i.e., for each three-disc package), sales of 500,000 total, which is all that seems likely unless he pulls off a fluke hit, would mean the deal would be worth $7.5 million. That’s a heady premium, of course, over the $1 million, say, he might have gotten under typical industry royalty rates a decade ago.

Since Target is selling the things for $12, its net cost might only be $1.5 million for the deal, which just comes out of its marketing budget.

So it’s all good for Prince … until his next release, when a new search for a marketing novelty begins.

* Warner Bros., against which Prince carried out a range war in the late 1990s, signed him as a teen and gave him creative control of his recordings. He had decades of stardom to revise his contracts to his liking.

** Here’s a live blog from EW showing that Prince is still acting the diva live; doing a series of three shows, he started a half-hour to an hour late in each, and couldn’t be bothered to get the sound right. When artists have sound problems, as he did that night, they like to play the victim. But it’s their show! Who else is responsible? If there are sound problems, it means they probably didn’t bother to do a sound check.

*** I was once at a panel discussion at the Pulitzer Art Museum in St. Louis; for some reason, a Target exec had been included on the dais. When it came time for her to speak, she hijacked the event by playing a ten- or fifteen-minute long Target promotional video.


4 Comments so far

  1. Lucas Jensen April 5th, 2009 7:15 pm

    You obviously have something against the man. Petulant behavior? He delivered best-selling records to Warner for years and felt he deserved more. It wouldn’t be the first time an artist felt a major label treated them poorly. YOU talk more about the marketing here than the music, but what did you think of the records? I’d be interested to know. The way I see it, he’s delivering two discs of Prince content for $12, which ain’t a bad price. Sure, it might stink (as many of his recent records have), but it’s not like he’s squeezing the fans for dough. I’m not a fan of retailer exclusives, for sure, but, like I said, it’s not a bad deal, really. Your cynicism here is boring and accusations of sellout laughable in an era where people do have to try out marketing gimmicks to sell CDs. Everybody’s scrambling to try to make money in this economy at the end of the CD era. They might be wrongheaded, but this seems, on the face of it, to be one of the less ridiculous marketing gimmicks we’ve seen. Sellout? What is this, 1981?

  2. Shawno April 5th, 2009 9:43 pm

    These days, it seems that discussing the music industry is often more interesting than discussing the actual music. That makes me kinda sad. Oh, well. Maybe I’m old.

  3. Argus Collingwood April 6th, 2009 10:20 am

    I really am liking the new tunes:-)

  4. Joe April 6th, 2009 11:51 am

    You have to hand it to Prince- he has indeed found a way to “Monetize” his albums in a way that other fading deities would LOVE to emulate- if only they could. I thought he could NEVER top the “Free CD with concert ticket” gimmick a few years back that not only netted him millions but allowed him to claim he had a hit album again- despite the fact that the album was unwanted, un-purchased and no doubt un-listened-to.

    In my music retail days (back when O(+< was trying to sell his CDs in record stores, despite the fact his preferred name was un-aphabet-izable), I used to love how his fans would rush in the first day the disc was available, glowing with the knowledge that this one- THIS ONE- was THE ONE- unlike all those other albums they THOUGHT were going to be a return to form. The best part of this deal for Prince is the “No returns” policy. Hope may spring eternal, but If you can find any record stores still open, I bet you’ll find cases of “Crystal Ball” stacked up in their back room.

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