Some record executives think they can survive Wal-Marts push

Today, before any new album is released, someone at each label is charged with asking Rosetta Stone, "Do we have any Wal-Mart issues?" If an advisory sticker is placed on an album, the label will put out a clean version about ninety percent of the time. Since the edited version of a hit record usually averages only about ten percent of a records total sales, they do it mostly to keep Wal-Mart happy. Wal-Mart has loosened up a bit, too. Eminems albums, stickered or not, are not carried by the chain, but it does sell the 8 Mile soundtrack. And it carries an edited version of 50 Cents debut. Since the labels are so adept at self-policing, though, censorship controversies are now rare. "There have been examples in the past, but its not a current issue," says Severson. Wal-Mart has also urged the labels to create exclusive new products that would lower music prices. In a short-lived test, Universal excerpted seven songs from Rosetta Stone V3 existing albums by acts such as Sum 41 and Ashanti and sold them at Wal-Mart for $7. Few other labels wanted to participate. "They proposed it to a bunch of artists and managers, but everyone was worried that we are sending a message that instead of the sixteen-track album we sold, those nine extra songs were filler," says a label executive. Some record executives think they can survive Wal-Marts push. They argue that the hottest acts will always command a premium price. "50 Cent sold 7 million copies," says one rep, "and I guarantee that many of those sold for fifteen, sixteen dollars." And they believe that Wal-Mart will want to carry those hits because they draw customers. "If they cant find a record at Wal-Mart, people will go elsewhere," says one executive. "We should play hardball." But each label is watching the others to Rosetta Stone Portuguese see if any make major concessions to Wal-Marts demands for lower prices. A label that gives in could gain shelf space at the expense of another. "If you lose an account, one of your rivals could get more product in the store and get one up on everyone else," says a major-label rep. "You have to tread cautiously." The tug of war between the labels and Wal-Mart isnt going away soon. The chain is aggressively opening new stores -- fifty-seven in October -- including some in urban areas. So unless it makes good on its threat to cut back on its music section, it will continue to grow as the top record store and become even more powerful. Laments one industry rep, "There is some impending doom associated with us not helping them."Price War: Does a CD have to cost $15.99?Major labels insist that the low prices mass Cheap Rosetta Stone V3 retailers such as Wal-Mart and Best Buy demand are impossible for them to achieve.

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