ARIA Loses Sanity, Keeps Grip On Charts
Weekly chart positions are the music industry's traditional currency, the coinage that eases the way to increased radio play and media attention.
But what would happen if that currency was devalued? That's a question Australian industry insiders are pondering as a chart data stalemate between the country's main labels body and its largest music retailer rumbles on.
In May, the Australian Recording Industry Assn. (ARIA) announced it was no longer using sales data from retail group Brazin to compile its singles, albums or digital charts.
In most other markets, losing one retailer might be inconvenient. When that merchant's stores account for around 30% of recorded music sales, the impact is clearly more significant.
Nevertheless, ARIA chart and marketing committee chairman John O'Donnell insists the charts remain "robust and solid" without Brazin.
In Australia, Brazin operates 392 stores under the Sanity, HMV and Virgin brands. Although "official" figures are not available, local wholesalers credit Brazin with a market share of between 28% and 32%.
Other music merchants do not charge ARIA for data, but Brazin CEO Greg Milne confirms that ARIA was told, effective May 19, that it would have to purchase the company's sales figures via Sydney-based research firm GfK. The latter collates Brazin's sales data to produce its in-store charts. Milne declines further comment.
Sources put the annual fee sought for the data at between $200,000 Australian and $300,000 Australian ($147,000-$220,500).
O'Donnell confirms the sum was "a pretty substantial figure," but adds that paying for data "is not something we'd entertain."
O'Donnell insists a weighting system ensures chart credibility. "It's still a chart of record," he says, "that we stand behind in reflecting the sales around the country."
Without Brazin's outlets, ARIA is collecting data from 850 music stores, including the JB Hi-Fi chain, which industry estimates give 18%-20% market share. It also collects data from an unspecified number of mass merchants, including the 700-plus Woolworths chain.
Around 750 outlets in that sample are operated by members of the Australian Music Retail Assn. whose chief executive, Ian Harvey, backs the ARIA charts. "[They are] representative of retail activity across Australia each week," Harvey says.
According to Harvey, payment for data is not an issue for other AMRA members, in part because ARIA pays the association an undisclosed sum annually to help with operating costs.
However, other sectors of the music biz remain concerned about Brazin's exit.
Music Managers Forum board member Colin Seeger says the body is "aware of the lengths ARIA goes to for a credible chart." But he adds, "If there is a perception in the public that it's not [credible], we have a problem."
One major-label source suggests the current impasse could mean a lower chart profile for development acts—particularly contemporary rock acts—that are usually championed by Brazin's chains.
Managers and labels of such acts admit to being apprehensive. Sydney-based Black Yak co-founder Sebastian Chase calls the Brazin/ARIA situation "a dilemma that has to be overcome."
Black Yak/Warner act the Whitlams' March 20 release "Little Cloud" dropped out of the Top 50 album chart published June 5 from No. 35 the previous week. The band's earlier albums had longer chart runs.
Acknowledging that "different stores have different biases in their customers' taste," Chase agrees there is a possibility the chart slide may have been accelerated by the Brazin/ARIA standoff.
Some observers had been waiting to see how Brisbane-based alternative rock quartet the Butterfly Effect's sophomore album, "Imago" (Roadshow Music), fared in the ARIA listing. At first sight, ARIA's weighting system seems to be working—in charts for the week ending June 24, "Imago" entered at No. 1 on the GfK-compiled HMV midweek chart, No. 2 on the ARIA listing.
The knock-on effect of a relatively low chart position leading to less airplay on chart-focused stations would concern many acts, although Butterfly Effect's Brisbane-based manager Dave Leonard takes a measured view.
"The issue doesn't worry us so much," he says. "Our sales come from the following we built up through touring rather than radio airplay."
However, Leonard adds: "I have no doubt in my mind that we'd have had a No. 1 debut if Brazin sales had been counted. The album was well-stocked at Sanity and HMV, and was No. 1 on both their [midweek] charts. But we had no product in department stores, because they only stock top 20 product or bands that had top 20 success."
Ironically, ARIA could have expected the charts to be under the spotlight for different reasons. In April, it launched a digital chart and O'Donnell—who is also managing director of EMI Music Australia—says digital data will be incorporated into its main charts Sept. 1.
The trade group also recently announced a sponsorship deal with cell phone maker Motorola (billboard.biz, Feb. 2) tied to a new national chart show on radio network Nova, and began supplying free printed charts to retail for distribution to customers.
The amount of sponsorship was not disclosed, but Leonard suggests that ARIA "could have reached a compromise and paid [Brazin]" with Motorola's money.
Regardless, O'Donnell says negotiations with Brazin will continue. "We have a good relationship with Brazin," he insists. "They're an important part of our business; we'll work with them in the future and hopefully rescind this."
30%
Amount of recorded music sold at Brazin's 392 Sanity, HMV and Virgin stores
By: Eliezer, Christie, Billboard
But what would happen if that currency was devalued? That's a question Australian industry insiders are pondering as a chart data stalemate between the country's main labels body and its largest music retailer rumbles on.
In May, the Australian Recording Industry Assn. (ARIA) announced it was no longer using sales data from retail group Brazin to compile its singles, albums or digital charts.
In most other markets, losing one retailer might be inconvenient. When that merchant's stores account for around 30% of recorded music sales, the impact is clearly more significant.
Nevertheless, ARIA chart and marketing committee chairman John O'Donnell insists the charts remain "robust and solid" without Brazin.
In Australia, Brazin operates 392 stores under the Sanity, HMV and Virgin brands. Although "official" figures are not available, local wholesalers credit Brazin with a market share of between 28% and 32%.
Other music merchants do not charge ARIA for data, but Brazin CEO Greg Milne confirms that ARIA was told, effective May 19, that it would have to purchase the company's sales figures via Sydney-based research firm GfK. The latter collates Brazin's sales data to produce its in-store charts. Milne declines further comment.
Sources put the annual fee sought for the data at between $200,000 Australian and $300,000 Australian ($147,000-$220,500).
O'Donnell confirms the sum was "a pretty substantial figure," but adds that paying for data "is not something we'd entertain."
O'Donnell insists a weighting system ensures chart credibility. "It's still a chart of record," he says, "that we stand behind in reflecting the sales around the country."
Without Brazin's outlets, ARIA is collecting data from 850 music stores, including the JB Hi-Fi chain, which industry estimates give 18%-20% market share. It also collects data from an unspecified number of mass merchants, including the 700-plus Woolworths chain.
Around 750 outlets in that sample are operated by members of the Australian Music Retail Assn. whose chief executive, Ian Harvey, backs the ARIA charts. "[They are] representative of retail activity across Australia each week," Harvey says.
According to Harvey, payment for data is not an issue for other AMRA members, in part because ARIA pays the association an undisclosed sum annually to help with operating costs.
However, other sectors of the music biz remain concerned about Brazin's exit.
Music Managers Forum board member Colin Seeger says the body is "aware of the lengths ARIA goes to for a credible chart." But he adds, "If there is a perception in the public that it's not [credible], we have a problem."
One major-label source suggests the current impasse could mean a lower chart profile for development acts—particularly contemporary rock acts—that are usually championed by Brazin's chains.
Managers and labels of such acts admit to being apprehensive. Sydney-based Black Yak co-founder Sebastian Chase calls the Brazin/ARIA situation "a dilemma that has to be overcome."
Black Yak/Warner act the Whitlams' March 20 release "Little Cloud" dropped out of the Top 50 album chart published June 5 from No. 35 the previous week. The band's earlier albums had longer chart runs.
Acknowledging that "different stores have different biases in their customers' taste," Chase agrees there is a possibility the chart slide may have been accelerated by the Brazin/ARIA standoff.
Some observers had been waiting to see how Brisbane-based alternative rock quartet the Butterfly Effect's sophomore album, "Imago" (Roadshow Music), fared in the ARIA listing. At first sight, ARIA's weighting system seems to be working—in charts for the week ending June 24, "Imago" entered at No. 1 on the GfK-compiled HMV midweek chart, No. 2 on the ARIA listing.
The knock-on effect of a relatively low chart position leading to less airplay on chart-focused stations would concern many acts, although Butterfly Effect's Brisbane-based manager Dave Leonard takes a measured view.
"The issue doesn't worry us so much," he says. "Our sales come from the following we built up through touring rather than radio airplay."
However, Leonard adds: "I have no doubt in my mind that we'd have had a No. 1 debut if Brazin sales had been counted. The album was well-stocked at Sanity and HMV, and was No. 1 on both their [midweek] charts. But we had no product in department stores, because they only stock top 20 product or bands that had top 20 success."
Ironically, ARIA could have expected the charts to be under the spotlight for different reasons. In April, it launched a digital chart and O'Donnell—who is also managing director of EMI Music Australia—says digital data will be incorporated into its main charts Sept. 1.
The trade group also recently announced a sponsorship deal with cell phone maker Motorola (billboard.biz, Feb. 2) tied to a new national chart show on radio network Nova, and began supplying free printed charts to retail for distribution to customers.
The amount of sponsorship was not disclosed, but Leonard suggests that ARIA "could have reached a compromise and paid [Brazin]" with Motorola's money.
Regardless, O'Donnell says negotiations with Brazin will continue. "We have a good relationship with Brazin," he insists. "They're an important part of our business; we'll work with them in the future and hopefully rescind this."
30%
Amount of recorded music sold at Brazin's 392 Sanity, HMV and Virgin stores
By: Eliezer, Christie, Billboard
posted by Mary Mezack at 12:37 PM
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