Top 40 Music on Compact Disc: "Industry Betting on ’Ringle’ Format"

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Topic: "Industry Betting on ’Ringle’ Format"

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Brian W.
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Posted: 11 September 2007 at 2:53pm \| IP Logged

Quote:

By Ed Christman

NEW YORK (Billboard) - As the recording industry wakes up from its summer slumber and starts thinking about what will motivate the consumer for the holiday selling season, the major labels are getting ready to launch the "ringle," which combines the mostly defunct single format with ringtones.

Each ringle is expected to contain three songs -- one hit and maybe one remix and an older track -- and one ringtone, on a CD with a slip-sleeve cover. The idea is that if consumers in the digital age can download any tracks they want individually, why not let them buy singles in the store as well? It also enables stores to get involved in the ringtone phenomenon.

Sony BMG Music Entertainment, which came up with the ringle idea, and Universal Music Group are going to be the first out of the box with ringles. The former will unleash 50 titles during October and November, while UMG will have anywhere from 10 to 20 titles ready. The Recording Industry Association of America has approved the "ringle" name, and there is an industrywide logo to help brand it. But except for Sony, each major still needs to cut a deal with a digital aggregator to allow consumers to redeem the ringtone.

Meanwhile, label profit margins for the format are considered slim. The majors are gambling that the ringle can instill in consumers the mind-set to connect to the Internet via the CD.

Sources suggest the ringle will carry either a $5.98 or $6.98 list price, while the wholesale cost to retailers will be less than $4. If it's $5.98, ringles will have a 31 percent gross margin, shy of the 35 percent profit margin that CD albums carry nowadays; if it's $6.98, that would give retail a 42.7 percent gross margin, similar to the profit margin cassette and vinyl albums enjoyed back in the day.

On the plus side, big retailers like Wal-Mart, Target, Best Buy and Amazon have agreed to support the configuration, although all of them may not be ready to do so at launch date, sources say.

So basically...

Quote:

The idea is that if consumers in the digital age can download any tracks they want individually, why not let them buy singles in the store as well?

they admit they should never have killed the CD single... without really admitting it, and acting like it's some new concept. Doiii!!!

The Hits Man
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Posted: 13 September 2007 at 7:35am \| IP Logged

The idea is that if consumers in the digital age can download any tracks they want individually, why not let them buy singles in the store as well?

This is so funny on so many levels!

Brian W. wrote:

they admit they should never have killed the CD single... without really admitting it, and acting like it's some new concept. Doiii!!!

Edited by The Hits Man on 13 September 2007 at 7:37am

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bdpop
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Posted: 13 September 2007 at 12:23pm \| IP Logged

At the current price point, it too, will be a failed format. The prices need to be more along the lines of $1.99 - $2.99 in order to spark some interest in the format. Can you imagine trying to sell a 45 RPM single for $5.99 - $6.99?

eriejwg
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Posted: 13 September 2007 at 3:34pm \| IP Logged

bdpop wrote:

Can you imagine trying to sell a 45 RPM single for $5.99 - $6.99?

Have you checked eBay, Musicstack and GEMM lately? 5.99 would be a bargain these days! LOL.

Brian W.
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Posted: 14 September 2007 at 2:23am \| IP Logged

bdpop wrote:

Can you imagine trying to sell a 45 RPM single for $5.99 - $6.99?

Well, if you consider inflation, that's probably roughly what a 45 would go for.

But too late -- people are used to paying 99 cents for a single, and there's no going back.

aaronk
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Posted: 15 September 2007 at 9:09pm \| IP Logged

Brian W. wrote:

But too late -- people are used to paying 99 cents for a single, and there's no going back.

While that's true, it would be more accurate to say that people are used to paying 99 cents per download. Now, if the record companies could offer at least 4 to 6 songs on a single, then it wouldn't be unreasonable to ask for $5.98. You also have the physical disc with artwork in addition to having the music.

torcan
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Posted: 20 September 2007 at 2:46pm \| IP Logged

While I'm glad that they're trying this, I really wonder if the public has just gotten used to singles not being available.

Case in point: in Canada, the cassette-single never really caught on after 45s disappeared in the early '90s, and CD singles were sporadic and expensive for quite a while. Finally, around 1997 or so, the record companies started releasing a lot of CD singles again, many of them for around $2.99-3.99. Record stores even had charts on the wall again of the Top 30.

They were around for quite a while, but about 3 years ago production was sharply curtailed in favor of the download. Now, I think people have gotten used singles generally not being available again.

While I've always preferred having my own copy, I wonder if the geneeral public can be brought back into a physical singles-market again?

Paul Haney
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Posted: 21 September 2007 at 9:24am \| IP Logged

The genie is already out of the bottle on 99 cent downloads. I highly doubt that physical singles will ever be successful again in any format.

aaronk
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Posted: 22 September 2007 at 6:14am \| IP Logged

Paul Haney wrote:

The genie is already out of the bottle on 99 cent downloads. I highly doubt that physical singles will ever be successful again in any format.

I guess it will depend on if downloads stay as affordable as they are. What if the record industry did away with single-track downloads? In other words, you could buy a single, but it would cost you $4.99 and you'd get 4 to 5 songs. Anything is possible, especially since the record companies seem to be hungry for more money.

Paul Haney
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Posted: 05 November 2007 at 2:12pm \| IP Logged

For those who missed it in the Michael Jackson thread, it looks like the Ringles that were set to come out tomorrow (11/6) have been postponed yet again:(

Brian W.
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Posted: 05 November 2007 at 3:23pm \| IP Logged

Well, Amazon told me mine already shipped, so hopefully I'm safe.

Paul Haney
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Posted: 05 November 2007 at 3:41pm \| IP Logged

I hope you get yours, Brian. I also hope this brings the physical single back to the stores...although I still think the price-point is too high. I'll believe in them when I actually have one in my hands!

Brian W.
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Posted: 06 November 2007 at 2:30pm \| IP Logged

Yahoo! I got it! Not from Amazon (yet), but a local store did have them in stock. They had not put them out yet, so they had to bring out a box from the back. I was a little worried, because I heard them talking low, then one said, "No, the memo said 11/6."

So I picked through it and ended up buying six ringles, I was so excited to see CD singles back in the stores!

But Best Buy said they still had a date on them of 12/31/2020, and couldn't put them out, so I don't quite know what's going on with the ringles. But I got mine!

I was surprised, though -- they're not in digipaks, as originally announced, but card sleeves. Some have two songs, some three. The tracklisting for "Thriller" online is wrong: the album version isn't on there at all. It's just the US single version and "Can't Get Outta the Rain," plus the ringtone. (It's also worth noting that this is the American CD debut of the 45 version of "Thriller.")

And I bought "Sexual Healing," since it's got the instrumental B-side, also making its CD debut.

I will say, they are playing up the "never on CD" aspect. Both of those have a sticker on the shrink wrap proclaiming "First time on CD!" for the bonus tracks.

I also bought:

-Survivor, "Eye of the Tiger" (with original cover and B-side)
-Rick Springfield, "Jesse's Girl" (with original cover and B-side)
-Boys Like Girls, "The Great Escape" (Album Version, Tom Lord-Alge Mix, Live Version)
-Sean Kingston, "Me Love" (Me Love, Colors (2007), Your Sister)

Edited by Brian W. on 06 November 2007 at 2:32pm

80smusicfreak
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Posted: 06 November 2007 at 11:48pm \| IP Logged

Brian W. wrote:

But Best Buy said they still had a date on them of 12/31/2020, and couldn't put them out, so I don't quite know what's going on with the ringles.

I stopped by my local Best Buy earlier this evening as well, not so much to look for ringles, but rather new album-length CD releases. (Side note: Those considering Van Morrison's new "Still on Top - The Greatest Hits", for just a few bucks more, I recommend opting for the import 2-CD version w/ 37 tracks vs. the domestic single-disc, 21-track version!) I did spot one ringle mixed in w/ the album-length CDs, and strangely, it was that one by Sean Kingston that you bought (haven't heard the song). I took a quick glance around the rest of Best Buy's CD racks, and no other ringles jumped out at me, nor was there a separate display, like I'd seen at Borders - so it appeared the Sean Kingston was probably just one they forgot to pull a couple of weeks ago. I thought about asking one of the employees a bit more, but ultimately decided not to bother...

I then went back to Borders, and still no display, so I inquired about the ringles again, since I'd been told last week that they'd be back today. Well, this time they said they'd actually SENT THEM BACK, and were told that the ringles wouldn't be coming back again until some time next year! (Kinda similar to the "unknown" release date of "12/31/2020" that you got from Best Buy.) Geez, do the folks responsible for the ringtone portion of the ringles really need that long to get their sh** together?!? I hope not! Glad to hear that you were able to find some, though, Brian - based on the full list you provided, I know there are a few that interest me as well (although none of them were among the batch that I saw a couple weeks ago)...

Quote:

I was surprised, though -- they're not in digipaks, as originally announced, but card sleeves. Some have two songs, some three.

Well, I did mention in the discussion on your MJ thread that they were in cardsleeves. :-) Actually, the original "Billboard" article that you posted above states pretty close to that ("slip-sleeve covers"), so I was never looking for digipaks. Yeah, the "extras" on the ringles that I saw did vary from title to title. Nice to know that they're making an effort to throw in some songs/versions previously unavailable on CD for us collectors, though...

80smusicfreak
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Posted: 07 November 2007 at 12:50am \| IP Logged

Paul Haney wrote:

I...hope this brings the physical single back to the stores...

I'll second that! Although I didn't buy any singles during the vinyl era (only cassette & CD, starting in the late '80s), I've always STRONGLY believed in the importance of the physical single as a marketing tool, and still buy the rare domestic commercial CD single when one is made available for current songs that I like...

Quote:

...although I still think the price-point is too high.

Best Buy's price on the Sean Kingston title that I saw earlier this evening was $4.99 - same as Borders - even though the original "Billboard" article that Brian W. posted above said that they'd likely retail for either $5.98 or $6.98. I agree that $5.98-$6.98 is too much, but feel that $3.99-$4.99 would be decent. (I assume Brian paid $4.99 ea. for his???)

But for ringles to be a success, one other very important thing must happen as well: ALL FOUR of the big distributors must get in on it, and simultaneously - similar to the way they finally did in support of the cassette single back in late '86/early '87, after several false starts (and let's not forget that there were SIX distributors back then!). Remember, the universal "introduction" of the cassette single in early '87 was such a huge success in the U.S. that they passed vinyl 45s in sales THAT FIRST YEAR. Heck, they completely revived and revitalized the singles market in the late '80s - so much so, that by the Summer of '89, the majors developed that false "singles sales must be hurting album sales" paranoia, and thus started deleting the cassette singles while the songs were still high on the charts, and then not releasing hit songs as commercial cassette singles at all starting in early '91. And right now, the "Billboard" article states that only two - Sony/BMG and Universal - are on board w/ ringles; WEA and EMI/Capitol are apparently still sitting on the sidelines. So did they learn anything from 21 years ago??? (Was anyone currently at these companies even in the music biz 20 years ago?!?) And even if WEA and EMI/Capitol do jump in shortly, will it be only two short years (like from 1987-89) before the labels/distributors get cold feet and decide to stunt the commercial single's comeback yet again??? As much as I hate to say it, the music biz is so screwed up, that this is bound to fail, and the issues that have already developed over the ringtone portion of the ringles only adds support to my prediction... :-(

Brian W.
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Posted: 07 November 2007 at 2:52am \| IP Logged

80smusicfreak wrote:

this time they said they'd actually SENT THEM BACK, and were told that the ringles wouldn't be coming back again until some time next year! (Kinda similar to the "unknown" release date of "12/31/2020" that you got from Best Buy.)

Oh, man, that will SUCK if that's true! The girl at Best Buy did tell me that a representative had come in and said not to sell them "until they told us to." Whew! Did I luck out. I still allegedly have a second copy of "Thriller" that's already shipped from Amazon, though. And, yes, mine were all $4.99.

But here's more evidence that the ringle promotion has been pushed back once again: When you go to the Sony website to redeem the ringtone with the code they give you in the package (it's on a little slip of paper inside), it says, "The Ringle redemption site is in public beta testing now UNTIL RINGLES ARE OFFICIALLY AVAILABLE [emphasis mine]. This site is open for redemptions during testing."

SonyBMGRingles

Also, Sony has removed all "connected singles" (what they called the ringles) from their SonyMusicStore website. Google the words Sony Connected Single, and several ringles pop up with links taking you to the sony website, but they're all dead links: "Requested merchandise unavailable."

Edited by Brian W. on 07 November 2007 at 3:05am

waldo
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Posted: 07 November 2007 at 4:51am \| IP Logged

Brian W. wrote:

Well, Amazon told me mine already shipped, so hopefully I'm safe.

i'm puzzled why Amazon only ship to certain customers and not all. i have had no such email. Brain, did you purchase Billie Jean on the same order?

how does 'Can't Get Outta The Rain' sound, does it clock in at the exact same time as the vinyl 45?

Any chance you could buy up all the MJ ones from your local store and put 'em on eBay. or sell me one directly = i'll pay twice the price, via paypal. i got a horrible feeling it's all going to be cancelled. i gotta have that "Rain" flipside.

Edited by waldo on 07 November 2007 at 6:23am

Paul Haney
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Posted: 07 November 2007 at 7:29am \| IP Logged

Went to several local chain stores yesterday and did not see even one Ringle...the guy at Best Buy said they got them but had to send them back per company-wide memo:(

Brian W.
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Posted: 07 November 2007 at 11:00am \| IP Logged

waldo wrote:

i'm puzzled why Amazon only ship to certain customers and not all. i have had no such email. Brain, did you purchase Billie Jean on the same order?

Maybe they didn't get the message until after mine shipped... but I still haven't got it yet. I didn't purchase Billie Jean, no, and I don't plan to, since I've already got the B-side. But it is still slated for 11/20, so maybe you should try ordering that.

waldo wrote:

How does 'Can't Get Outta The Rain' sound, does it clock in at the exact same time as the vinyl 45?

Seems to be same time: actual 4:04, with that rather abrupt fade that's on the 45. Sounds is... good, clear, but it's the usual loud, maximized sound you get on CDs these days.

waldo wrote:

Any chance you could buy up all the MJ ones from your local store

I'll see what I can do.

Brian W.
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Posted: 07 November 2007 at 8:11pm \| IP Logged

A call to the Virgin Megastore on Sunset Boulevard in Hollywood confirmed what 80sMusicFreak was told at Borders: the ringle promotion has been pushed to 2008, and stores ordered to ship all copies back.

I asked if Sony had given a release date, and the Virgin employee told me no, it was "just 2008."

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