Labels Looking To Add Value To CDs By Bundling DVD-Videos 
Home Theater News Music - General News
Written by Jerry Del Colliano   
Tuesday, 28 October 2003

Record executives looking to find new ways to sell prerecorded (non-download) music are addressing CD’s value problem in a new way for the coming holiday selling season by bundling special DVD-Video discs with the CD’s for about the same price. Artists reportedly bundling DVD-Video content in with their CDs include Limp Bizkit, POD, Pink and Mandy Moore. The DVD’s fit right in the packaging and add a good amount of value to consumers who in the Gen Y demographic tend to value video games or DVD movies more highly than prerecorded music.

Music orientated DVD-Video releases are also bundling CDs in with their packaging to try to drive music sales from the movie bins at the local mega-stereo-record shop. Artists reportedly releasing DVD-Video music tiles with bundled CDs include Coldplay, Jennifer Lopez, Avril Levine, Primus and A Simple Plan.

A record executive who asked to remain anonymous told that adding a DVD-Video disc to a CD in relatively large volumes would cost in the neighborhood of $0.85 more per disc. He noted that $0.85 more in packaging costs (plus the cost to produce the content on the bundled DVD) is far more profitable for a label than simply dropping the cost of an album to $9.99.

While the music industry may be onto a trend, selling a DVD-Video helps them in no way market a copy protected format to the masses. Maybe they have given up any hopes of ever copy protecting their music at this point yet both the DVD-Audio and SACD formats offer comprehensive copy protection. What DVD-Audio and SACD don’t have that these bundled packages do is commercial appeal to younger, teenage record buyers. If the music business can ever recover from the PR disaster caused by the RIAA suing kids for downloading music back in the day and find a way to inspire them to buy prerecorded music, labels will have earned a significant and badly needed marketing victory.

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