AC/DC Marketing

JohnnyG

Honorary Lifetime CEO
Staff member
It has been reported that AC/DC has refused to sell their music on iTunes stating that their music is meant to be heard as an album and not as singles. That I have no problem with but I wonder why they would only allow their newest album to be sold at WalMart and not the rest of the retail world. Are they losing sales opportunities by doing this or do you feel that if someone really wants the album they will go to WalMart to buy it? What are your thoughts? Thanks.

p.s. I just checked iTunes and there are 160 AC/CD songs there by various artists, so at least in time they are selling the rights to their music.
 
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Walmart's marketing savvy is why they did it:-


Walmart's done it successfully for the Eagles, and Journey before. Classic rock is an extremely marketable commodity. An entire generation grew up on the stuff. No surprise that it sells really well with the Walmart boomer/rocker crowd. Music + AC/DC promotional items etc makes it a more attractive and dependable revenue stream for the band.

Why it wont work:-

Its an exclusively US deal.
The ease of buying from anywhere in the world makes it a bit of a farce. Retailers can buy the music from say Agentina or Spain and retail it in the US
 
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I have no problem going to wal mart to get it. It's most likely going to be cheaper anyways. And if your embarrassed to go into wal mart.......
 
Itunes and things like it only normally pay the band $0.01 for every song downloaded.
Some sights are free, and some people found out how to hack their Rock Band/Guitar Hero and put those songs on their Ipod.

That's why Metallica took down Napster, and thats why AC/DC refuses to sell their albums anywhere else.
 
Walmart bothers me, and I don't like AC/DC supporting them.

For one thing, Walmarts are not everywhere. Some of us live way out in the mountains or desert, or even remote small towns. Don't really want to drive to Walmart when there are other local stores that sell music closer.

Walmart also hires 5 people when 3 would do, and keeps them all under 30 hours a week so the company avoids paying health insurance and other benefits. To me this circumvents the intent of the law. Companies should provide decent jobs with living wages and become assets to our communities. Our taxes and welfare agencies pick up the slack, giving Walmart a money benefit, undercutting the competition and encouraging the behavior in yet other companies.
 
Well I couldn't agree more with that last bit but just wonder why they wouldn't want every avenue available open to sell their product. Most products have problems selling bec ause of the traffic involved. I would want worldwide distribution if I thought I had a decent product.
 
.Are they losing sales opportunities by doing this or do you feel that if someone really wants the album they will go to WalMart to buy it?
If i was a member of ACDC (or any other successfull band for that matter) I wouldn't care about sales or my album, it's about the music, not the money.
 
Hello,

The question to be asked to the Young brothers:
Why Walmart? Marketing strategy? Stock market? Music above money or vice versa?

Cheers,
 
If i was a member of ACDC (or any other successfull band for that matter) I wouldn't care about sales or my album, it's about the music, not the money.

That may be true but the theme of the thread was why only one store, not their music philosophy. They said in their interview that they wanted their music to be sold in its entirety, and not singles and that's why they chose not to sell to iTunes and that is fine, but since they are selling them why not everywhere. You don't make albums just for the music.
You can do that in the studio or on stage. Bands tour to give folks a chance to listen and then buy their music. Most venues have the album or CD present to sell on the spot. I guess WalMart has small booths outside the venues.

p.s. I just checked iTunes and there are 160 AC/DC songs listed by various artists so at least in time they are selling the rights to their music.
 
I may be wrong but I thought I had read somewhere in the past that Wal Mart will only do exclusive deals with artists or not carry them at all? I'm sure artists negotiate with them (and I'm sure not all artists are exclusive)...but as the largest retailer in the world I'm sure they can make demands that others can't.
 
Zam you may be right. I remembering watching a program about the process that vendors go through to get their products into Walmart, and most of the time they tell you what they will pay for your product, and what they will sell it for. So they may have been the exclusive seller by their own terms and not AC/DC. Good catch.
 
That is a good point, but still doesn't make a whole lot of sense to me. Sure, Wal-Mart is a very large retailer and it's great to get your product in there. However, to me, if they have an "exclusive" deal policy it makes more sense to me to put my album in record stores and the like rather than Wal-Mart. I guess I'm saying that I go to Wal-Mart to buy batteries and watering cans, not music. I know that's not the case for everyone, but I think it's a pretty accurate statement for many. To me, I feel like it makes more sense to distribute it more widely and not have it in Wal-Mart. But hey, I'm just a college kid who hasn't taken economics yet, so I could be totally wrong.
 
I may be wrong but I thought I had read somewhere in the past that Wal Mart will only do exclusive deals with artists or not carry them at all? I'm sure artists negotiate with them (and I'm sure not all artists are exclusive)...but as the largest retailer in the world I'm sure they can make demands that others can't.

Bingo. We have a winner. Wal-Mart calls the shots - not the bands or record labels.

If you want some Wal-Mart enlightenment, rent this movie: http://www.walmartmovie.com/

You can get it from Netflix or any Blockbuster. My days of shopping at Wally World are fortunutely over.
 
p.s. I just checked iTunes and there are 160 AC/CD songs there by various artists, so at least in time they are selling the rights to their music.

Actually, AC/DC can't prevent other artists from covering their songs and then doing whatever they like with them, unless the songs have never been released. I'm sort of ambivalent about Wal-Mart: they clearly have some malicious business practices, but they're also going green and they're probably good for the economy. However, I don't think I'd ever do an exclusive deal with them.
 
I believe it was the Howard Stern Interview, but I heard yesterday, while watching interviews with brian and angus, that the deal is not their idea, its a presentation via record companies, wal-mart, and marketing.

The deal was walmart buys 3 millions copies themself.
The buyer saves quite a bit, AC/DC is guarenteed 3million minimum sales on first press.
The offer to say no, is probably no really there, so what they have to do is work out the best deal for everyone.

They stated they felt everyone was a winner.
I know I enjoyed paying only $12
 
First of all, you guys are pretty off base about Wal*Mart policies in general. Yes, they do some of the stuff mentioned at some stores, but as a whole, the company is not the evil devil that some make it out to be. That Wal*Mart Movie has been shot to heck by experts...all the examples in it are real, but most deal more with local stores that break laws/subvert the intent of the law, than the actual company. When you have as many stores as Wal*Mart, you will have bad managers at some. I know about a dozen people who work at Wal*Mart, both as clerks and in management. They all have awesome benefits, comparable to what state workers make in PA (which are some of the best benefits out there). My one friend needed massive surgeries on her arms, and her mom works at Wal*Mart, and it was ALL covered under their insurance. There are a lot of misconceptions about Wal*Mart...even look at what zambizzi said, about "reading somewhere that artists have to deal exclusively with Wal*Mart, or not be sold there." Clearly that's not true...I have bought plenty of CDs there, as diverse as Miles Davis and The Dave Matthews Band. Obviously neither of those artists have an exclusive deal with Wal*Mart, but are sold there. But rumors like this get out there, and then people think poorly about the company, when it's just not true.

As far as the exclusive deals are concerned, it makes sense for some artists. Most music stores are targeted at younger audiences, and charge more while paying the artist very little, if anything at all, in royalties. While this may be ok for a Jonas Brothers, Miley Cyrus, or others who aim at the younger market, for classic rock stars, aiming at adults, it doesn't make sense to bend over backwards for these companies and get so little in return. It is estimated that as high as 75% of American adults go to Wal*Mart at least once a year, so it's not like you aren't putting you record where the people are. Because of their size, and because of making an exclusive deal, Wal*Mart is able to pay the artist more per copy sold, thus the artist profits more, Wal*Mart profits, so both parties are happy. For those who don't live near a Wal*Mart, they sell them online, and even with shipping, it's still cheaper than somewhere like an FYE, so in the end, everyone wins except for the retailer who is trying to rip the artist off.
 
p.s. I just checked iTunes and there are 160 AC/CD songs there by various artists, so at least in time they are selling the rights to their music.

The way I understand it, ANYONE can re-record and release a song without the original artist's permission (as I heard from a Paul Anka interview about his 2005 album of cover tunes). If you want to use the ORIGINAL version, you need permission (as is the case with Guitar Hero/RockBand tracks or any movie soundtracks).
So that's why you will see their songs by other artists on iTunes.
 
Bingo. We have a winner. Wal-Mart calls the shots - not the bands or record labels.

If you want some Wal-Mart enlightenment, rent this movie: http://www.walmartmovie.com/

You can get it from Netflix or any Blockbuster. My days of shopping at Wally World are fortunutely over.

Just posting these videos as counterpoint to the Walmart Movie.

Penn & Teller BS episode re: Walmart (language NSFW, so wear headphones ;) )

Part 1: http://www.youtube.com/watch?v=KGb9OLqsvV8
Part 2: http://www.youtube.com/watch?v=zzV0L-f1Fdk
Part 3: http://www.youtube.com/watch?v=Cqp5KTygcog

Back on topic, Walmart's the largest retailer in the USA, if not the world. Why wouldn't ACDC (or anybody for that matter) bend over backwards to get their product carried by them?
 
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