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Thread started 08/02/09 6:29am

jiorjios

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New marketing strategy to save the cd format

This is not about the Mariah Carey cd. It's about the marketing strategy behind it. What do you think about that?

The Monetization of Mimi: Mariah CD to Have Ads
As music sales continue to drop like they're not so hot throughout the industry, Island Def Jam Music Group is jamming on a new business model: integrating brands into artists' CD booklets.

The first deal, created for the Mariah Carey release Memoirs of an Imperfect Angel on Sept. 15, is a 34-page co-production with Elle magazine that includes lifestyle ads from Elizabeth Arden, Angel Champagne, Carmen Steffens, Le Métier de Beauté and the Bahamas Board of Tourism. Providing the experiment goes well, the label is eyeing bigger brand deals for booklets of CDs by Rihanna, Bon Jovi, Kanye West and other artists.


The mini magazine contains Mariah-centric editorial ("VIP Access to Her Sexy Love Life," "Amazing Closet," "Recording Rituals") and lifestyle advertising along with lyrics and other CD booklet elements. Elle contributed the editorial and designed the layout.

The booklets were created for the first run of U.S. CDs (1 million) and the first 500,000 overseas, said Jeff Straughn, svp-strategic marketing for Island Def Jam Music Group. It will also be available in a digital format for those who buy music online. A condensed version of the Mariah mag, sans the 14 pages of CD-specific material, will be inserted into 500,000 subscription copies of Elle's October issue, which arrives mid-September.


"The idea was really simple thinking: 'We sell millions of records, so you should advertise with us,'" said Antonio "L.A." Reid, chairman, Island Def Jam Music Group, a unit of Universal Music Group. "My artists have substantial circulation—when you sell 2 million, 5 million, 8 million, that's a lot of eyeballs. Most magazines aren't as successful as those records."

Carey was "very open" to the concept when Reid showed her a mock-up of the booklet in a magazine format that included brand imagery synonymous with her lifestyle. "I wouldn't want to do Mariah Carey and Comet abrasive cleaner," Reid said, laughing. "I wanted things that really reflected her taste."

Reid said the program was unprecedented. Terry Dry, president of Los Angeles-based digital-word-of-mouth marketing agency Fanscape, agreed, saying that the CD booklet advertising is a first, though he wouldn't be surprised if more labels look into doing the same thing: "Hollywood Records [Disney], I know they love to monetize all over the place for something like a Jonas Brothers record. Open any rap record and a couple of inserts will come flying out, usually for a business the artist is a part of. I wouldn't be surprised if 50 Cent had a Vitaminwater thing."

Labels are looking for ways to eke out extra bucks, borrow equity and cut costs anywhere they can today. Year-to-date album sales were down 13.9 percent for the week ending July 19, 2009, compared with the period last year, according to Nielsen SoundScan (227 million units vs. 195.5 million units). Of those 2009 sales, 18.9 percent, or 41.9 million, were digital.


Ad revenues are subsidizing 100 percent of Island Records' costs for the Carey booklet, but label execs also see the alliance as a way to expand distribution at a time when the local music store is becoming as rare as the Beatles' Yesterday and Today LP with the "Butcher" cover.

"We don't have music retailers any more, so a smart consumer products company that understands the value in distributing music is going to restore the vitality of our business," Reid speculated. "If we distribute music properly and if it's done tastefully, it could be a huge profit center for all of us. That is the missing link—we need partnerships."

To underscore the point: At one large retail establishment, partner Elizabeth Arden is allowing the label to cross-promote the release. The CD Memoirs of an Imperfect Angel will be merchandised directly outside Walmart's music aisle with Carey's new signature Arden fragrance, Forever, which has its ad on the booklet's back cover. The CD and scent will also be displayed together in the beauty department.
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Reply #1 posted 08/02/09 7:01am

KoolEaze

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I´m all for it. I like the idea of having a physical CD with a booklet, I prefer that over an MP3 but CDs are simply too overpriced ( or were overpriced a couple of years ago...some still are).

Some other suggestions:

-Make sure the album comes with a decent booklet or at least a bit of paper with some info, if not on paper, then maybe some extra data for the computer so I can read who played on the songs.

-Make CDs much, much cheaper. A CD is actually cheaper to manufacture than a vinyl pressing, however, CDs are often horribly overpriced.No wonder nobody buys CDs anymore.

-Don´t release two or three different versions of the same album, that is REALLY annoying because the customer feels ripped off and cheated if he or she buys an album only to find out that three weeks later, there´s another version for a slightly higher price with added bonus tracks, videoclips, interviews and whatnot. Why not release the whole package from the get go ? Why milk the customers and then act surprised when folks rather download stuff than get ripped off?


The physical format is not dead yet but ugly packaging, overpriced CDs and lack of decent music and passion have led to the download epidemic. Understandably so.
" I´d rather be a stank ass hoe because I´m not stupid. Oh my goodness! I got more drugs! I´m always funny dude...I´m hilarious! Are we gonna smoke?"
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Reply #2 posted 08/02/09 7:06am

mcw00

What are folks considering "expensive" for a cd?
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Reply #3 posted 08/02/09 7:16am

jiorjios

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KoolEaze said:

I´m all for it. I like the idea of having a physical CD with a booklet, I prefer that over an MP3 but CDs are simply too overpriced ( or were overpriced a couple of years ago...some still are).

Some other suggestions:

-Make sure the album comes with a decent booklet or at least a bit of paper with some info, if not on paper, then maybe some extra data for the computer so I can read who played on the songs.

-Make CDs much, much cheaper. A CD is actually cheaper to manufacture than a vinyl pressing, however, CDs are often horribly overpriced.No wonder nobody buys CDs anymore.

Agreed in all your points. May I add one more? If you're gonna release a second version at least add all the videos, the non-concert live performances and remixes to make it worth the extra bucks (kind of like 50's The Massacre re-release)

-Don´t release two or three different versions of the same album, that is REALLY annoying because the customer feels ripped off and cheated if he or she buys an album only to find out that three weeks later, there´s another version for a slightly higher price with added bonus tracks, videoclips, interviews and whatnot. Why not release the whole package from the get go ? Why milk the customers and then act surprised when folks rather download stuff than get ripped off?


The physical format is not dead yet but ugly packaging, overpriced CDs and lack of decent music and passion have led to the download epidemic. Understandably so.
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Reply #4 posted 08/02/09 7:17am

jiorjios

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jiorjios said:

KoolEaze said:

I´m all for it. I like the idea of having a physical CD with a booklet, I prefer that over an MP3 but CDs are simply too overpriced ( or were overpriced a couple of years ago...some still are).

Some other suggestions:

-Make sure the album comes with a decent booklet or at least a bit of paper with some info, if not on paper, then maybe some extra data for the computer so I can read who played on the songs.

-Make CDs much, much cheaper. A CD is actually cheaper to manufacture than a vinyl pressing, however, CDs are often horribly overpriced.No wonder nobody buys CDs anymore.


-Don´t release two or three different versions of the same album, that is REALLY annoying because the customer feels ripped off and cheated if he or she buys an album only to find out that three weeks later, there´s another version for a slightly higher price with added bonus tracks, videoclips, interviews and whatnot. Why not release the whole package from the get go ? Why milk the customers and then act surprised when folks rather download stuff than get ripped off?


The physical format is not dead yet but ugly packaging, overpriced CDs and lack of decent music and passion have led to the download epidemic. Understandably so.


Agreed in all your points. May I add one more? If you're gonna release a second version at least add all the videos, the non-concert live performances and remixes to make it worth the extra bucks (kind of like 50's The Massacre re-release)
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Reply #5 posted 08/02/09 10:49am

KoolEaze

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mcw00 said:

What are folks considering "expensive" for a cd?



A new CD costs approximately 20 US dollars over here, and I find that quite expensive. A download costs roughly 10 euros, that´s 15 dollars, which is also quite expensive for just a download without a booklet or a CD.

I think 10 dollars would be the ideal price, maybe 12, but not more than 15.
" I´d rather be a stank ass hoe because I´m not stupid. Oh my goodness! I got more drugs! I´m always funny dude...I´m hilarious! Are we gonna smoke?"
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Reply #6 posted 08/02/09 10:57am

Sdldawn

jiorjios said:

This is not about the Mariah Carey cd. It's about the marketing strategy behind it. What do you think about that?

The Monetization of Mimi: Mariah CD to Have Aids



eek eek eek eek eek eek
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Reply #7 posted 08/02/09 11:55am

errant

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I hope nobody tells them that I don't even crack open CD booklets any more. lurking
"does my cock look fat in these jeans?"
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Reply #8 posted 08/02/09 12:35pm

coolcat

the cd is dead.
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Reply #9 posted 08/02/09 3:51pm

lastdecember

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Alright heres the deal MUSIC IS FUCKING DEAD for the most part, because NO ONE in america knows how to market, everyone has their head up their ass and is trying to tie everything together. Meaning when you have a cd, you have to have a modeling contract, and then have a perfume, and then have a book, and then have a movie, and then have a clothing line and work them all together and U know what gets lost..... THE IMPORTANCE of the music, which is fucking gone! Its not about saving the cd or lp or the tape or the single, ITS dead and gone already, the same people trying to save the shit are the same ASSHOLES who killed the shit in first place, the soundscam zombies who were too concerned about week one sales and didnt realize their was more to it. So this idea will die like the freaking Mini Disc and the DVD audio bullshit.

Case in point, THE PUBLIC for the most part DONT GIVE A SHIT anymore. Just the another night i went to this "Save the Music" event, and i got there just before the doors opened the placed was pretty full, they had new acts come out and do something a little different, like PLAY and sing live, and guess what EVERYONE (at least 99%) TALKED DURING EVERYONES set. Save the music huh, its dead LETITGO

"We went where our music was appreciated, and that was everywhere but the USA, we knew we had fans, but there is only so much of the world you can play at once" Magne F
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Reply #10 posted 08/02/09 3:59pm

KoolEaze

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lastdecember said:

Alright heres the deal MUSIC IS FUCKING DEAD for the most part, because NO ONE in america knows how to market, everyone has their head up their ass and is trying to tie everything together. Meaning when you have a cd, you have to have a modeling contract, and then have a perfume, and then have a book, and then have a movie, and then have a clothing line and work them all together and U know what gets lost..... THE IMPORTANCE of the music, which is fucking gone! Its not about saving the cd or lp or the tape or the single, ITS dead and gone already, the same people trying to save the shit are the same ASSHOLES who killed the shit in first place, the soundscam zombies who were too concerned about week one sales and didnt realize their was more to it. So this idea will die like the freaking Mini Disc and the DVD audio bullshit.

Case in point, THE PUBLIC for the most part DONT GIVE A SHIT anymore. Just the another night i went to this "Save the Music" event, and i got there just before the doors opened the placed was pretty full, they had new acts come out and do something a little different, like PLAY and sing live, and guess what EVERYONE (at least 99%) TALKED DURING EVERYONES set. Save the music huh, its dead LETITGO


You´re on point. Parts of your post reminded me of Prince and most rappers.
lol
" I´d rather be a stank ass hoe because I´m not stupid. Oh my goodness! I got more drugs! I´m always funny dude...I´m hilarious! Are we gonna smoke?"
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Reply #11 posted 08/02/09 4:15pm

lastdecember

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KoolEaze said:

lastdecember said:

Alright heres the deal MUSIC IS FUCKING DEAD for the most part, because NO ONE in america knows how to market, everyone has their head up their ass and is trying to tie everything together. Meaning when you have a cd, you have to have a modeling contract, and then have a perfume, and then have a book, and then have a movie, and then have a clothing line and work them all together and U know what gets lost..... THE IMPORTANCE of the music, which is fucking gone! Its not about saving the cd or lp or the tape or the single, ITS dead and gone already, the same people trying to save the shit are the same ASSHOLES who killed the shit in first place, the soundscam zombies who were too concerned about week one sales and didnt realize their was more to it. So this idea will die like the freaking Mini Disc and the DVD audio bullshit.

Case in point, THE PUBLIC for the most part DONT GIVE A SHIT anymore. Just the another night i went to this "Save the Music" event, and i got there just before the doors opened the placed was pretty full, they had new acts come out and do something a little different, like PLAY and sing live, and guess what EVERYONE (at least 99%) TALKED DURING EVERYONES set. Save the music huh, its dead LETITGO


You´re on point. Parts of your post reminded me of Prince and most rappers.
lol


Well actually i would let Prince slide on that whole thing because that is more a mechandising thing like selling a tshirt at a gig, my issue is more of tying these things together, like, the fact that you have to have a whole magazine photoshoot first, i mean how many times do we see someone like Britney or Jessica or Justin or whomever, doing the cover of Maxim or Blender or Vogue and then releasing a pair of pants and sticking that AD inside the cd. I blame most of this on things like VIBE magazine, i mean was that even a Magazine?? I went through 40-50 pages before i could get to the table of contents, everything was an ad, and at the bottom the "by the way" buy my new cd ad. MUSIC has become the "do you want fries with your order" its an afterthought, thats why it doesnt sell, because its marketed as AN ADD-ON and after awhile Add-ons, become DIE-OFFS

"We went where our music was appreciated, and that was everywhere but the USA, we knew we had fans, but there is only so much of the world you can play at once" Magne F
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Reply #12 posted 08/02/09 7:38pm

RnBAmbassador

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CDs should cost $10.00 max. If you go in any store with a $20.00 bill, you should be able to walk out with 2 CDs.
$20.00 for one CD is an outrage, perido!

I totally agree when the re-issue comes forth, what a rip-off to the consumer to ask a music fan to but the same CD again with a couple of bonus cuts.

The music business playe itself with over-pricing of CDs, whack talent saturation, and too much marketing/exposure for on hit-wonders that had dredful albums and only a decent hit single. Music videos also helped to kill the music with their over-bloated budgets and tired similar storylines
.
Music Royalty in Motion
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Reply #13 posted 08/03/09 2:13am

KoolEaze

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lastdecember said:

KoolEaze said:



You´re on point. Parts of your post reminded me of Prince and most rappers.
lol


Well actually i would let Prince slide on that whole thing because that is more a mechandising thing like selling a tshirt at a gig, my issue is more of tying these things together, like, the fact that you have to have a whole magazine photoshoot first, i mean how many times do we see someone like Britney or Jessica or Justin or whomever, doing the cover of Maxim or Blender or Vogue and then releasing a pair of pants and sticking that AD inside the cd. I blame most of this on things like VIBE magazine, i mean was that even a Magazine?? I went through 40-50 pages before i could get to the table of contents, everything was an ad, and at the bottom the "by the way" buy my new cd ad. MUSIC has become the "do you want fries with your order" its an afterthought, thats why it doesnt sell, because its marketed as AN ADD-ON and after awhile Add-ons, become DIE-OFFS



and I thought I was the only one.

that´s the main reason why I stopped buying Vibe.
wink
" I´d rather be a stank ass hoe because I´m not stupid. Oh my goodness! I got more drugs! I´m always funny dude...I´m hilarious! Are we gonna smoke?"
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Reply #14 posted 08/03/09 5:33am

FrenchGuy

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jiorjios said:

This is not about the Mariah Carey cd. It's about the marketing strategy behind it. What do you think about that?

The Monetization of Mimi: Mariah CD to Have Ads
As music sales continue to drop like they're not so hot throughout the industry, Island Def Jam Music Group is jamming on a new business model: integrating brands into artists' CD booklets.

The first deal, created for the Mariah Carey release Memoirs of an Imperfect Angel on Sept. 15, is a 34-page co-production with Elle magazine that includes lifestyle ads from Elizabeth Arden, Angel Champagne, Carmen Steffens, Le Métier de Beauté and the Bahamas Board of Tourism. Providing the experiment goes well, the label is eyeing bigger brand deals for booklets of CDs by Rihanna, Bon Jovi, Kanye West and other artists.


The mini magazine contains Mariah-centric editorial ("VIP Access to Her Sexy Love Life," "Amazing Closet," "Recording Rituals") and lifestyle advertising along with lyrics and other CD booklet elements. Elle contributed the editorial and designed the layout.

The booklets were created for the first run of U.S. CDs (1 million) and the first 500,000 overseas, said Jeff Straughn, svp-strategic marketing for Island Def Jam Music Group. It will also be available in a digital format for those who buy music online. A condensed version of the Mariah mag, sans the 14 pages of CD-specific material, will be inserted into 500,000 subscription copies of Elle's October issue, which arrives mid-September.


"The idea was really simple thinking: 'We sell millions of records, so you should advertise with us,'" said Antonio "L.A." Reid, chairman, Island Def Jam Music Group, a unit of Universal Music Group. "My artists have substantial circulation—when you sell 2 million, 5 million, 8 million, that's a lot of eyeballs. Most magazines aren't as successful as those records."

Carey was "very open" to the concept when Reid showed her a mock-up of the booklet in a magazine format that included brand imagery synonymous with her lifestyle. "I wouldn't want to do Mariah Carey and Comet abrasive cleaner," Reid said, laughing. "I wanted things that really reflected her taste."

Reid said the program was unprecedented. Terry Dry, president of Los Angeles-based digital-word-of-mouth marketing agency Fanscape, agreed, saying that the CD booklet advertising is a first, though he wouldn't be surprised if more labels look into doing the same thing: "Hollywood Records [Disney], I know they love to monetize all over the place for something like a Jonas Brothers record. Open any rap record and a couple of inserts will come flying out, usually for a business the artist is a part of. I wouldn't be surprised if 50 Cent had a Vitaminwater thing."

Labels are looking for ways to eke out extra bucks, borrow equity and cut costs anywhere they can today. Year-to-date album sales were down 13.9 percent for the week ending July 19, 2009, compared with the period last year, according to Nielsen SoundScan (227 million units vs. 195.5 million units). Of those 2009 sales, 18.9 percent, or 41.9 million, were digital.


Ad revenues are subsidizing 100 percent of Island Records' costs for the Carey booklet, but label execs also see the alliance as a way to expand distribution at a time when the local music store is becoming as rare as the Beatles' Yesterday and Today LP with the "Butcher" cover.

"We don't have music retailers any more, so a smart consumer products company that understands the value in distributing music is going to restore the vitality of our business," Reid speculated. "If we distribute music properly and if it's done tastefully, it could be a huge profit center for all of us. That is the missing link—we need partnerships."

To underscore the point: At one large retail establishment, partner Elizabeth Arden is allowing the label to cross-promote the release. The CD Memoirs of an Imperfect Angel will be merchandised directly outside Walmart's music aisle with Carey's new signature Arden fragrance, Forever, which has its ad on the booklet's back cover. The CD and scent will also be displayed together in the beauty department.


Its not really a bad idea... But I always take such "innovations" as something that can go too far... Like, whats the nextconcept? A sample of a cream to have Ushers abs? A free tube of Prince eyeliner? A replica of the panties Britney Spears wore in the "Circus" video? ... Who knows?
Everybody is somebody, but nobody wants to be themselves.
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Reply #15 posted 08/03/09 5:54am

SoulAlive

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[color=blue][b]CDs should cost $10.00 max. If you go in any store with a $20.00 bill, you should be able to walk out with 2 CDs.
$20.00 for one CD is an outrage, period!


I agree.$10 is a reasonable price for a CD.I've gone into stores like FYE and saw CDs that cost $16.99.With tax,it's gonna be a little over $18!! That's damn near $20 disbelief
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Reply #16 posted 08/03/09 6:14am

Graycap23

The format is not dead.....the artistry is.
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Reply #17 posted 08/03/09 6:32am

jiorjios

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SoulAlive said:

RnBAmbassador said:

[color=blue][b]CDs should cost $10.00 max. If you go in any store with a $20.00 bill, you should be able to walk out with 2 CDs.
$20.00 for one CD is an outrage, period!


I agree.$10 is a reasonable price for a CD.I've gone into stores like FYE and saw CDs that cost $16.99.With tax,it's gonna be a little over $18!! That's damn near $20 disbelief


Well online u can buy most of the new cds for around 12 euros including postage. But yes in the shops they cost around 20 euros
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Reply #18 posted 08/03/09 6:35am

FrenchGuy

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jiorjios said:

SoulAlive said:



I agree.$10 is a reasonable price for a CD.I've gone into stores like FYE and saw CDs that cost $16.99.With tax,it's gonna be a little over $18!! That's damn near $20 disbelief


Well online u can buy most of the new cds for around 12 euros including postage. But yes in the shops they cost around 20 euros


Just check the price of LotUS Flow3r in France... Its on "bargain" now at 19,99 euros, the original price being... 27.99 euros!! WTF!! They are lucky I love CDs, c'uz such prices are really a good excuse for downloading mad
Everybody is somebody, but nobody wants to be themselves.
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Reply #19 posted 08/03/09 7:29am

paisleypark4

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mcw00 said:

What are folks considering "expensive" for a cd?


more than 9.99 nod
Straight Jacket Funk Affair
Album plays and love for vinyl records.
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Reply #20 posted 08/03/09 7:34am

jiorjios

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FrenchGuy said:

jiorjios said:



Well online u can buy most of the new cds for around 12 euros including postage. But yes in the shops they cost around 20 euros


Just check the price of LotUS Flow3r in France... Its on "bargain" now at 19,99 euros, the original price being... 27.99 euros!! WTF!! They are lucky I love CDs, c'uz such prices are really a good excuse for downloading mad


Well it is three discs so it was around 9 euros a disc
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Reply #21 posted 08/03/09 7:53am

paisleypark4

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this will actually be the second time Mariah has done this. She had a Ipod Skin attatched in her E=MC2 album..I paid the extra 3.00 for it and it was awesome. Wish I still had it..It peeled off eventually from all my wear and tear.
Straight Jacket Funk Affair
Album plays and love for vinyl records.
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Reply #22 posted 08/03/09 7:57am

Cinnie

lastdecember said:

Its not about saving the cd or lp or the tape or the single, ITS dead and gone


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Reply #23 posted 08/03/09 11:44am

novabrkr

I don't see a reason why a CD should cost more than those magazines with glossy paper, like Vogue, Q or something like that.

It's ridiculous that you can get movies on DVD for so much cheaper on average than mere CDs that can hold far less data.
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Reply #24 posted 08/03/09 11:55am

Phishanga

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Graycap23 said:

The format is not dead.....the artistry is.



No. There are many, many, many great bands out there.
Hey loudmouth, shut the fuck up, right?
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Reply #25 posted 08/03/09 12:53pm

suga10

Wal-Mart has the best prices for CDs.

I was surprised at how cheap some of my favorite CDs were there.

Anything about $15 for a CD is too expensive. Stores like Barnes & Noble, Borders, really over charge for CDs- that's one thing I noticed.
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Reply #26 posted 08/03/09 1:24pm

Graycap23

Phishanga said:

Graycap23 said:

The format is not dead.....the artistry is.



No. There are many, many, many great bands out there.

Not 2 the "general" public.
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Reply #27 posted 08/03/09 2:19pm

Cinnie

suga10 said:

Anything about $15 for a CD is too expensive. Stores like Barnes & Noble, Borders, really over charge for CDs- that's one thing I noticed.


And that would be the sale price which should really be the loss leader to get you to buy their 23.99 catalog items eek
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Reply #28 posted 08/03/09 2:30pm

vainandy

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I'm not surprised they want to put advertisements in the CD booklets. It's just typical of how the so-called "entertainment" business these days has nothing to do with entertainment and everything to do with business. Hell, television shows don't even have closing credits anymore because of all the advertisements taking up the majority of the screen and the credits up in the top corner scrolling at 90 miles an hour.

I really don't care what they decide to do with CD packaging anymore because the "music" on the CDs isn't worth buying anyway. For all I care they can include scratch and sniff cards that smell like shit so that the consumer can smell the same thing he's listening to and get the full experience.
Andy is a four letter word.
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Reply #29 posted 08/03/09 2:38pm

FrenchGuy

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vainandy said:

I'm not surprised they want to put advertisements in the CD booklets. It's just typical of how the so-called "entertainment" business these days has nothing to do with entertainment and everything to do with business. Hell, television shows don't even have closing credits anymore because of all the advertisements taking up the majority of the screen and the credits up in the top corner scrolling at 90 miles an hour.

I really don't care what they decide to do with CD packaging anymore because the "music" on the CDs isn't worth buying anyway. [/]For all I care they can include scratch and sniff cards that smell like shit so that the consumer can smell the same thing he's listening to and get the full experience[/b].



lol lol falloff
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