Music sales in the US continue to decline, according to a May 8 report from the National Association of Recording Merchandisers (NARM). Retails sales totaled $8.93 billion in 2002, down from the $10.46 billion reported for 2000. Most (87%) of the organization's members reported a drop in music sales last year—only 13% posted higher totals.Last year, music retailers actually sold more audio/video hardware, a total of $10.04 billion, than they did music. They also sold $3.04 billion worth of books and magazines, $2.69 billion worth of DVDs, $1.76 billion worth of video games and $988 million worth of computer software. The NARM survey, conducted by Nielsen SoundScan, accounts for approximately 80% of the nation's music retailers. No survey was made in 2001.Sony Music reorganization: After recently dismissing some top executives, Sony Music has reorganized its sales departments into one division, to be headed by Tom Donnarumma, former senior vice president of sales and marketing at Columbia Records Group. Part of a streamlining effort that cut about 1000 workers from the Sony payroll, the move will combine the Epic and Columbia labels, eliminating redundant operations. The move includes the appointment of Bill Frohlich as executive vice president of sales at Sony Music Distribution. "This new, powerful sales department will enable us to develop fully integrated, long-term sales strategies that will benefit all of the company's artists, labels, and divisions," said Sony Music president Don Ienner.
Artemis Records has acquired the Vanguard Classics catalog, over 1000 titles in all, and has formed a new label to be known as Artemis Classics. Reissues will include many recordings long out of print, such as Bach Guild recordings and other historical performances. Some titles will be remastered in the Super Audio CD and DVD-Audio formats, according to a May announcement, with most to appear as budget priced CDs with "demonstration quality sound." More than 200 Vanguard titles have never been available as CDs.One of the last century's legendary classical, jazz, and folk labels, Vanguard was founded in 1950 by brothers Seymour and Maynard Solomon. In the 1980s, the Welk Music Group bought Vanguard, but Seymour Solomon reacquired the classical catalog and reissued it on the Omega Classics and Vanguard Classics labels. Solomon died last year.Artemis reportedly paid between $300,000 and $500,000 for Vanguard Classics. Artemis Classics' CEO is music industry veteran Danny Goldberg; former London/Decca vice president Greg Barbero serves as president. Koch Entertainment Distribution will handle distribution chores.
Music lovers are rapidly signing up for satellite radio, but the jury is still out as to whether the subscription rate will be strong enough to keep startups XM Satellite Radio and Sirius Radio afloat. On May 7, XM Satellite Radio Holdings, Inc. reported a net loss of $126.3 million, compared with a net loss of $112.3 million a year earlier, despite a huge surge in revenue to $13.1 million from $1.8 million. Subscriber revenue accounted for $12.5 million of the total, almost ten times the $1.4 million reported for the same period last year. As of March 31, XM had 483,075 subscribers, six times last year's level, and by April had reached the half-million mark. XM is expected to get a boost from expanded retail availability of satellite receivers. In early May, Wal-Mart Stores, Inc. announced that its 2100 US stores would soon carry all models of Delphi XM "SkyFi" radios.
