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MUSIC DVDS RAISING A RUCKUS

DualDiscs add to surge of titles

By Susanne Ault 11/15/2004

Music on DVD is hitting high notes this fourth quarter.

Although film and TV discs obviously still dominate, the number of music DVDs landing at shelves this holiday season is expected to soar compared to last year.

Music Video Distributors will be delivering 851 music DVD titles to clients--a 44% hike from the 592 titles it sent out in 2003.

Prompting the activity is music companies' search for a fresh revenue stream to replace drying up CD sales. Also, retailers are thrilled about the advancing quality of the product and are consequently devoting more space and marketing resources to these titles.

During the last year, record labels have evolved the DVDs to include exclusive content, which is standard in the relatively more mature film world. Previously, many discs featured straight music videos already plastered on MTV.

In another innovation, labels have been officially rolling out DualDisc albums. This new technology holds an audio CD on one side and an enhanced DVD (either in 5.1 Surround Sound, DVD-Audio or LPCM stereo) on the other.

Observed Carl Mello, a buyer at New England chain Newbury Comics, "Before you'd see a CD release, bundled with a DVD [as an afterthought], but now it's a DVD bundled with a CD."

Recent hot sellers include 2003 DVD box releases The Rolling Stones Four Flicks and Led Zeppelin's self-titled package. The respective four-disc and two-disc sets have each sold about 500,000 units.

Many DVDs boasting those selling points are heading to retailers this fourth quarter. Newly released home movies play a starring role in Nirvana's Nov. 23 box set With the Lights Out. And American Beauty DualDisc from the Grateful Dead will street the same day.

Best Buy has huge hopes for its exclusive Nov. 9 release Elton John: Dream Ticket, throwing the title a red carpet bash in Las Vegas Oct. 25. Additionally, a Live Aid DVD coming Nov. 16 will be the first chance fans can see footage from that 1985 concert in about 20 years.

"[Music on DVD] is increasing more and more as people see the potential," said a Best Buy spokesman. "Success breeds on itself."

Best Buy teamed up with MX Entertainment earlier this month in a commitment to advertise music DVDs in stores that carry MX's toggle technology. On discs such as Nov. 9 release Eric Clapton: Crossroads Guitar Festival, people can seamlessly choose between simultaneous tracks.

Universal Music Enterprises is initially shipping 250,000-plus units for the Nirvana three-CD/one-DVD package.

"The DVD is a large part of the marketing for this," said UME's senior VP sales and marketing Richie Gallo. "Most [box sets] are a reflection of greatest hits. The Nirvana box is an overview but also has a lot of unreleased material."

Virginia music chain Plan 9 has carved out its first music on DVD section at its stores in the last couple of months. The store is stocking about 30% more music DVDs this year over 2003.

"We want to draw attention to the fact that we have them," Plan 9's head buyer Clay Robertson said. "It's confusing to us. There's CDs with DVDs, DVDs that come with a CD and then DualDiscs."

As with any growth spurt, music on DVD has its awkward qualities. The genre comes in such a wide array of formats that it has been tricky for retailers to figure out whether to shelve them in music or DVD sections.

For instance, Simple Plan's Oct. 26 release Still Not Getting Any? was offered to retailers as both a CD/DVD combo pack and as a single DualDisc.

The launch of DualDisc also has not been quite harmonious.

First, reviews from early retailer testing were mixed (VB, 8-27). Now labels have pushed back the bulk of the releases from scheduled October bows to November and first-quarter 2005 debuts.

Some label sources contend that the competitive holiday season was a poor place to introduce a new product to the public. In another wrinkle, the audio portion of The Donnas DualDisc was defective, so Warner Music Group recalled units.

Also, Pioneer Electronics and Sony Electronics have each issued advisories warning consumers that some of their players are incompatible to play DualDiscs. A source close to the format argued that studies have proven DualDiscs work on 95% of all players.

Nevertheless, retailers seem optimistic that DualDiscs will further develop the music-on-DVD category.

"It's an added value thing," Virgin Entertainment Group's senior music product manager Jerry Saurez said. "It's something that gets people to purchase the item instead of downloading it," which has steeply cut into CD sales.

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