Joined: 14 May 2004 Posts: 278 Location: Austin, TX
Posted: Fri Jun 04, 2004 4:02 pm Post subject: CD included with concert ticket - interesting idea
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.
Joined: 17 May 2004 Posts: 49 Location: Alexandria,VA
Posted: Tue Jun 08, 2004 2:55 am Post subject:
It sounds like a good idea though I'm afraid only the "big" guys like Prince we'll be able to afford it.I mean not everyone can charge at least $50 for the cheap seats,certainly not the jazz/fusion gyus.
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