Rapper Eminem, back from a five-year hiatus from recording, is expected to reach No. 1 with the biggest debut of the year at about half a million copies sold. That number, though, is nowhere near the 1.6 million his 2005 "Encore" sold in its first 10 days of release.
The transition from physical to digital sales is still very much a work in progress for labels. Warner Music Group reported a net loss of $68 million, largely related to its investments in digital streaming services Imeem and Lala.
For The Record
Los Angeles Times Friday, May 29, 2009 Home Edition Main News Part A Page 4 National Desk 1 inches; 24 words Type of Material: Correction
Music sales: A May 21 Business article about music industry sales said Eminem's "Encore" was released in 2005. The album came out in 2004.
The promise of ad-supported streaming services isn't paying off financially, labels agree.
"None of that has worked out as a source of revenue for us," said Jon Strickland, head of sales at Silver Lake-based Epitaph Records. "That said, there's a huge marketing thing that happens on those services. I don't think there's anything out there right now that's going to take the place of selling a CD."
"21st Century Breakdown" illustrated the ever-shifting value of the album in today's transitory world, with a digital download retailing for $14.99 at Apple's iTunes store and $4.99 at Amazon.com the day it was released. Warner Music Group did not return calls requesting comment about the variable pricing structure.
Music fans can expect to see more options when it comes to pricing and what they get for their money.
For Eminem's "Relapse," Interscope is offering packages that range from $14.99 to $129.99 -- CDs at the higher end of the price spectrum will be bundled with T-shirts or autographed prints.
Epitaph will do a similar rollout with its hotly anticipated release "Let the Dominoes Fall" from punk veterans Rancid on June 2.
"What you'll see is a more flexibility and changes in pricing," said a major label executive who spoke on the condition of anonymity, not wanting to appear as a spokesperson. "Tracks won't sell for 99 cents and albums won't sell for $9.99. You'll see premium albums at $14.99, and some albums at $6.99 and lower. What you're seeing is a very rigid landscape being broken up into a kaleidoscope of pricing."
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todd.martens@latimes.com
