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kirk95
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Joined: 13 Jul 2003
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Location: Boulder, CO
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 Posted: Fri Jun 04, 2004 8:00 am Post subject: Interesting - Prince inclues CD with every concert ticket |
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I thought this was a really inovative idea.
| Quote: | From: "Ben Cruz
Date: June 2, 2004 3:22:52 PM MDT
To: "Pho" <pho@onehouse.com>
Subject: pho: RE: Prince gives concert goers new album.
Reply-To:
Don't know if it's a trend or not - I haven't heard of any other artists'
shows bundled with a CD in quite the same way. But it's smart - and a long time coming. Bundling is a time-honored way of sellng more "stuff" while delivering to consumers greater **perceived** value (in some cases even if the package price equals what you would have sold the items for separately).
Prince's gig in the DC area will cost $50 for the cheap seats and $78 for the rest. Add to that about $13.00 in Ticketmaster fees and you're paying between $63 and $91. A lot of big-name artist concerts cost that and more.
So if you get a recording as part of the deal, it seems like gravy.
The CD might have a $9 wholesale value. I think it's produced by Prince's
own label so he gets most of the gross. Studio and related expenses
amortized across lots of volume from the bundling scheme, should be no more than a few dollars per unit and the variable cost per unit of physical production less than a dollar. Let's say that the remainder (his margin) is $5 per unit so that's what he gives up in the bundling deal (I don't believe he is giving up anything at all as the ticket price includes that $5 CD margin). That's less than 10% of the ticket price on average - a small price to pay for marketing to sell lots more tickets.
Many of those consumers would download those songs from a file sharing service if they didn't get the CD at the concert as a "freebie". Prince has pre-empted them!
Gigs and recorded music sales will be more closely tied together in the
future. After all, more recordings by an artist sell in the weeks
surrounding a tour than during any other period with the exception of the initial weeks of a new release (which are a very high marketing expenditure period). In fact, more music is sold locally prior to concerts than after concerts since audiences enjoy shows more when they are very familiar with the music.
Our TourAlert notifications will include a link to purchase, in advance of
concerts, recordings by the artists that consumers requested to appear
locally. Aside from Prince's unique promotional tactic it's the best way we know of to tie together, for maximum consumer convenience, the passion for live music with the desire to have a recording in advance of the event.
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Aeolian
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Joined: 04 Nov 2003
Posts: 886
Location: SF Bay Area
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| Posted: Fri Jun 04, 2004 8:56 am Post subject: |
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It's a killer CD too!
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Bluelobster
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Joined: 25 Sep 2003
Posts: 1172
Location: France
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| Posted: Fri Jun 04, 2004 9:20 am Post subject: |
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 that's
GREAT , & remember Prince was the first to bet on new technologies with a CD/CD rom called interactive, and the first to fight his company.
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juspasinby2003
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Joined: 18 Dec 2003
Posts: 255
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| Posted: Fri Jun 04, 2004 9:31 am Post subject: |
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| Proof positive that he is indeed a shrewd business person. I wonder how much of those profits he tithes? |
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JavaDiva
Senior Member
Joined: 19 Feb 2004
Posts: 103
Location: Upper left coast
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| Posted: Fri Jun 04, 2004 10:21 am Post subject: Prince |
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10% to new guitars  |
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Aeolian
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Joined: 04 Nov 2003
Posts: 886
Location: SF Bay Area
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| Posted: Fri Jun 04, 2004 10:33 am Post subject: Re: Prince |
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| JavaDiva wrote: | | 10% to new guitars |
That weird guitar he plays is built by Shecter but only available through Prince on his website. Shrewd indeed!
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kirk95
Starship Captain
Joined: 13 Jul 2003
Posts: 1043
Location: Boulder, CO
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| Posted: Fri Jun 04, 2004 12:10 pm Post subject: |
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I think it's brilliant. What better time to nail down the transaction. Get a show and the CD. One more thing, would you like a live recording of the show you just saw? How about a subscription to the artist's subscription site that offers: Bonus content, mixes, video clips, prerelease clips, live chats with the artist, forum access to the artist...
Here I go again! Sorry...
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roadwarriorfortheblues
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Joined: 17 Jul 2003
Posts: 908
Location: Tampa Bay, FL
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| Posted: Fri Jun 04, 2004 1:59 pm Post subject: |
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| Bluelobster wrote: | | :& remember Prince was the first to bet on new technologies with a CD/CD rom called interactive |
I think maybe Todd Rundgren was tied with Prince for first place in the interactive race ?  According to liner notes on Todd's "With a Little Help from my Friends," in the early 80s Rundgren began creating enhanced music videos via computer before there was MTV. By the early 90s Todd had created the first interactive music cd that allowed the listener the ability to reshape the songs into alternative versions.
Also, I read that the big deal behind Prince giving away free cds is that they are being counted as "sales" on the industry charts 
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kohar
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Joined: 22 Sep 2003
Posts: 45
Location: detroit
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| Posted: Mon Jun 07, 2004 4:25 am Post subject: |
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 Prince supposedly offers the best concert seats to his fans on his website too! This'll be the first time I got tickets through his website. (I'll let you know how good they were after his show here in Detroit on the 20th. Prince concerts are my fav, right after RF!!!
Doesn't he have a fun website?? I love the purple smoke. |
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