August 27, 2005
Retail Track: NARM Makes The Most Of A Down Year
BY ED CHRISTMAN
So, the National Assn. of Recording Merchandisers convention held Aug. 11-14 in San Diego was deemed a success by most participants Retail Track came across, even though it lacked a dominant issue or theme. One distribution president called it "the flatline convention"—he didn't mean that it was dead, just that there was no controversy.
While there seemed to be universal concern about business being down, it wasn't transmitted with the panic or despair that permeated the 2003 convention. Instead, retailers and suppliers took a sanguine approach, pointing out that they had to work together to solve the industry's problems.
With that, some of the issues merchants were discussing appear to have been resolved. For the first time in a while, merchants said they hear the majors talking about releasing product in the upcoming first quarter. Now all the labels have to do is keep the flow consistent throughout 2006, instead of shoving it all into the fourth quarter, their usual modus operandi.
Looking to fourth-quarter 2005, merchants urged labels to examine the release schedule from last year, when music faced strong competition from DVDs. "The real opportunity for the intelligent music marketer this year is to target the weeks in last year's fourth quarter that had big DVD releases," says Kevin Cassidy, executive VP at West Sacramento, Calif.-based Tower Records. "We are looking for who is going to help us punch through last year's comparable-store numbers."
On the exclusives front, retailers switched from condemning them to asking for them.
Meanwhile, non-retailers finally acknowledged the CD burning problem. Recording Industry Assn. of America chairman Mitch Bainwol and Russ Crupnick, president of NPD Group, cited burning as a growing concern in their respective NARM talks.
On to the final night's award ceremony, where Sony BMG dazzled everyone with an 18-minute clip showing the history of music through the voices of its artists. That was followed by Rod Stewart, playing a tight mini-show of his greatest hits.
Earlier in the convention, Universal Music & Video Distribution presented a three-song performance by Styx, followed by a showcase of wares slated to arrive in the third and fourth quarters. Other acts who performed during the well-attended UMVD session were "American Idol" runner-up LaToya London, Ne-Yo, Fefe Dobson and the All-American Rejects.
Afterward, I joined distinguished competitor Mark Pearson for a chance to sit down with London, who has been signed to Concord. London was not surprised to be an "Idol" runner-up, she said, because she has never won a talent contest. She added that her runner-up status was for the best, given that Sony BMG and Simon Fuller's 19 Entertainment have an option for one month to sign any artist who competes on the show. By not winning, London said, she was able to sign with an indie label and have some control over her album.
The convention featured 45 performances in total, making it one of the most musically oriented NARM meets in years. Three nights of Club NARM featured great performances by World Leader Pretend, Antigone Rising, Rachel Sage, Raul Midón, Liz Phair and Charlie Sexton, among others. The convention kicked off with sets by Columbia's Delta Goodrem and Welk Music's Nickel Creek, while La 5a Estación and Reik were featured performers during Sony BMG Norte's product presentation, and Blindside was showcased during the Navarre session.
In addition, the trade show featured three or four bands each day. Retail Track was lucky enough to catch a sterling performance by Raining Jane. The guy who seemed to be everywhere at the convention, Harry Perry, also had a booth at the trade show, where he riffed all day long on guitar, promoting his band's album "Video Commander."
As usual, Sony Music Label Group gave a product presentation in its suite. A videoclip highlighted its upcoming releases, including albums from Ricky Martin, Barbra Streisand, Neil Diamond, Patti Loveless, Coheed & Cambria, Switchfoot, Three 6 Mafia and Gretchen Wilson. Also coming are albums from Chris Botti, Jamiroquai and Martha Stewart, who will release three Christmas-themed titles.
In other news from the convention, indie-retail coalition Music Monitor Network has expanded and made some key appointments.
The addition of Sound Garden, which has one store in Baltimore and one in Syracuse, N.Y., brings the network's store count to 96, with combined revenue exceeding $100 million.
MMN named Michael Kurtz as president. Kurtz was previously executive director, running the network's day-to-day operations. It also appointed Jon Tueller, of Salt Lake City-based Graywhale, as chairman; and Chris Brown of Portland, Maine-based Bull Moose, as vice chairman.
When the NARM awards were announced at this year's convention, many attendees wanted to know why Amoeba, hailed by many as the best record store in the country, wasn't nominated. Well, the answer is short and sweet: Amoeba isn't a member of NARM and therefore is not eligible for the awards.
In his speech at the convention, NARM chairman Richard Willis, who is also CEO of Baker & Taylor, noted that most press on the industry is downbeat and urged attendees to work to change that. "We have got a good message, and we have to become advocates for the industry," he said.
He also addressed those who criticize the industry for thinking only in the short term. "We won't have a long term," he noted, "if we don't secure the short term."
In what appeared to be the convention's most unpopular announcement, NARM said it will return to Orlando, Fla., next year. The 2006 event will take place Aug. 2-5 at the Gaylord Palms resort. More enthusiasm greeted the announcement that the 2007 convention will shift to spring and the Midwest, running April 29-May 2 at the Chicago Hilton. ••••
Additional reporting by Brian Garrity and Todd Martens.
