New Music Merchandise Sweetens the Profit
A new brand of boxed chocolates debuted this spring in stores such as Target and Wal-Mart: “Let’s Talk About Love,” named after the multi-platinum Celine Dion album.
In fact, the candy’s box--a small square, decorated with the cover of Dion’s latest album--could almost be mistaken for a Dion CD. But inside aree assorted chocolates in the shape of musical notes and instruments. Price: about $8, or about $12 for a package that includes a CD single of Dion’s hit “Because You Loved Me.”
A spokesman for Dion says the singer’s management “worked closely” with her record label’s sister company, Sony Signatures, on the chocolates to create “a product that would reflect the heart she puts behind her music.” Dion donated a portion of the proceeds to charity and plans to cooperate on similar candies for next Valentine’s Day.
The confections are an example of how top-ranked label Sony’s merchandising operation is testing the waters for marketing opportunities. At San Francisco-based Sony Signatures, products from Barbra Streisand wine to rock group Kiss Halloween masks are being linked to recording artists, who get a chance at some money and exposure in exchange for lending their names to such products. More artist-tied candies are planned to appear at specialty retailers next spring.
The operation is headed by Del Furano, who thinks the time is ripe to take music merchandise beyond the traditional concert programs, T-shirts and caps. “The baby boomers who grew up with rock and roll are now the decision makers at retailers, ad firms and licensors,” Furano said.
There are skeptics. “It really has to be the right band; a New Kids on the Block or a Spice Girls,” said Michael Tabakin, director of trend merchandising for Toys R Us and Kids R Us, “and if it’s not a quick hit, the retailer can get stuck with merchandise.”
Moreover, other companies have found the business so weak that they’ve gotten out of it entirely. “We exited the music merchandise business in the U.S. last year,” said Peter Brasser, managing director for London-based Nice Man Europe, a licensing unit of German media giant Bertelsmann. Brasser says consumer taste appears to have turned away from music-related apparel and merchandise. “Where we’re still in the business, it’s not even 1% of our revenue now,” said Brasser, adding that Nice Man is now doing better with lines such as Harley-Davidson and Ferrari apparel.
Few bands have successfully merchandised themselves. The Grateful Dead was one of the top examples, turning such things as tie-dyed T-shirts and silk neckties into a multimillion-dollar business before the death of bandleader Jerry Garcia in 1995.
Superstar bands such as the Rolling Stones and the Eagles can sell tens of millions of dollars worth of merchandise on tour but do not maintain a steady presence at retail. And for every Rolling Stones or Eagles, there are half a dozen bands that have asked for multimillion-dollar upfront payments for merchandising (basically, a guaranteed advance against royalties), which merchandisers rarely recoup.
Still, Furano is undeterred. “[Music] executives are all realizing the need for promotion now. . . . I think you’ll see Tim McGraw beef jerky, ‘Imagine’ [John Lennon’s imprint] ice cream and Santana salsa and condiments,” Furano said. “Things like filled popcorn tins and coffee are a natural,” he added.
Along with his staff--which includes Joseph Bongiovi, brother of rocker Jon Bon Jovi--Furano continues to sniff out deals for artists including pop songstress Mariah Carey, teenage Country sensation LeAnn Rimes and such acts from the past as the Beach Boys and John Lennon.
This list of names points out one of the Catch-22s of the business: While these licensing deals could theoretically provide added exposure for developing acts, an artist is only really salable after he or she is already a well-known quantity.
