Edgar Bronfman Jr. Discusses New MVI Format
June 6, 2007 at 5:44 AM (PT)
While WARNER MUSIC GROUP Chairman/CEO EDGAR BRONFMAN JR. declined comment TUESDAY (6/5) on a potential last-minute takeover play for EMI GROUP, he did shed more light on the economics behind the company's recently launched MVI format, which the firm created to redefine artists' relationships with fans, reports THE HOLLYWOOD REPORTER.
LINKIN PARK's new album "Minutes to Midnight," which bowed last month, was the first-ever release in MVI, or Music Video Interactive disc.
Speaking at the DEUTSCHE BANK Securities Media & Telecommunications Conference, BRONFMAN said the retail price of the MVI is only about $1 or so above a CD and the profit margins are "very nearly what they are on CDs." Since the MVI does not play in cars, WMG is in the early going of packaging it with a CD.
For fans, price is not the issue ... content is the issue.
WMG produces much of the content that goes on the MVI, including music videos, photo galleries, song lyrics and behind-the-scenes information. Additional content like interviews with the artists "doesn't cost much" to produce thanks to the use of webcams and the like, the BRONFMAN added. Bronfman said that early feedback shows that fan reviews of the MVI "have been outstanding" with a "very high registration rate." WMG said thousands of people have registered their LINKIN PARK MVI for the bonus content.
"For fans, price is not the issue ... content is the issue," he said, adding that this is a sign that variable pricing would make sense in digital music sales.