Apple working with big record labels to boost album sales

APPLE IS working with the four largest record labels to stimulate digital sales of albums by bundling an interactive booklet, …

APPLE IS working with the four largest record labels to stimulate digital sales of albums by bundling an interactive booklet, sleeve notes and other features with music downloads, in an effort to change buying trends on its online iTunes store.

Physical album sales have fallen sharply as music retailing has evolved from compact disc sales in shops to digital downloads. Consumers are buying large amounts of digital music, but individual tracks rather than higher-margin albums.

Apple is working with EMI, Sony Music, Warner Music and Universal Music Group on a project codenamed “Cocktail”, according to people familiar with the situation. The labels and Apple are working towards a September launch date for the project, which aims to boost interest in albums by bundling liner notes, photographs, lyric sheets and video clips with the music.

“It’s all about recreating the heyday of the album when you would sit around with your friends looking at the artwork while you listened to the music,” said one executive familiar with the plans.

READ MORE

Consumers would be able to play songs directly from the interactive book without clicking back into iTunes software, executives said.

“It’s not just a bunch of PDFs,” said one executive. “There’s real engagement with the ancillary stuff.”

The music companies declined to comment.

Album sales in the US fell 14 per cent in 2008 to 428.4 million units, according to Nielsen SoundScan, which tracks retail sales data. Downloads were up on the previous year, however.