Wal-Mart Flexes Music Muscle – AC/DC Deal Moves 780,000 – Popular Downloads Now 74 Cents
Just in time for the silly season, Wal-Mart is flexing some serious music muscle in an industry that is basically knocked out on its feet. This past week, AC/DC sold more than 780,000 copies its first new album in over 10 years Black Ice. The exclusive retailer deal, with a substantial marketing rollout by both Wal-Mart and Columbia Records, demonstrated the retailers clout with consumers. In addition, Wal-mart relaunched their DRM-free download store with a promotional push that dropped song downloads to just 74 cents.
The AC/DC release not only gave Wal-Mart its fastest selling album of the year, but also increased broader music sales at Wal-Mart’s Sam’s Club locations due to increased foot traffic. In addition, related merchandise, including men’s clothing, also received a nice boost, according to the retailer.
Wal-Mart, who initially launched their online music store with 88 cent downloads, is now offering popular new tracks at an even lower price point of 74-cents. Other downloads, including their catalog of about 3 million songs retail for 94 cents.
The Future: Look for Wal-Mart to leverage their brick & mortar advantage, with physical and online initiatives including a new campaign, that will launch in November, allowing a free download with any CD purchase from a Wal-Mart store.
