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Aug 1, 2009

How the Music Industry Found a New Way To Get Money

Since music sales are decreasing the music labels have to look for new ways to make profit.

Now they decided to advertise in albums booklets as it will first happen with Mariah Carey's "Memoirs Of An Angel".

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.


Read full article.

It's almost amazing they came up with that so late. I just hope the ads won't be annoying. As long as it's handled tastefully, I will probably be fine with it.

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