Labels Weigh In On Tower And Shifts In Retail
World music blog DubMC queried some world music labels to get their thoughts on the Tower Records situation -- some are owed big money by the struggling retailer -- and got some thoughts on greater shifts in brick-and-mortar retail as well. Their comments show optimism for digital, acknowledgement of the CD's staying power and regret that retailers are cutting back on stock of niches like world music.
A few key comments:
Patrick Moxey, President of Escondida Music:
"Tower is still ordering and racking world music product, but they are not particularly world music friendly. The biggest loss is, as you mention, Virgin which was extremely proactive in world music. The CD is not dead yet, but as downloading increases, the return rates are going up, makings CDs a tougher business."
Ian Ashbridge of Wrasse Records:
"There is a real issue developing in that CD sales are decreasing and the legal download market is not covering the shortfall, primarily due to illegal copying and downloading. This leaves retail exposed as their stock-to-sales ratio increases. As a result, they will cut their inventory. They will not cut chart or rock music at this point, and as a result that is why they cut niche sections first."
Jacob Edgar, CEO of Cumbancha and A&R consultant to Putumayo.
"Stores aren't selling as much as they used to, there are fewer hits and as a consequence they are becoming more conservative, taking fewer risks to expose new artists. I don't blame it all on downloads, though. The fact is, there is too much substandard stuff being released and consumers can't keep up. Hell, I can't even keep up, and part of my job is listening to music! Since world music is a niche genre it is definitely being impacted by the current situation. Stores are buying less, reducing their world music sections and sticking to the tried and true."
Music Groups