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#611388 - 12/10/08 02:17 AM The Orchard to Cease Physical CD Distribution
rnbluvva
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Registered: 05/03/01
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Very interesting tidbit of news I got...

Just another sign that the physical format for music is near dead.

I am wondering if Amazon.com is going to go purely digital... or is there something else up with Amazon.com and physical music product?

Are they just doing this to tiny labels like ours, or is cessation of physical distribution happening to everyone? Methinks they are just cutting out us little fishies perhaps?

I see no press release on EDC's site regarding this... but perhaps they haven't updated it yet.

 Quote:
URGENT NOTICE CONCERNING YOUR ORCHARD CD DISTRIBUTION

As a legacy client of Orchard's one-stop CD distribution service, we must inform you of a major change that requires your prompt attention. Due to our CD fulfillment & logistics partner EDC going out of business on very short notice, and the continued evolution of The Orchard's business, The Orchard has been forced by market conditions to re-assess our ability to support you in this aspect of your Orchard client service to the level we believe you deserve. Thus, effective January 1, 2009, we are no longer offering our one-stop CD distribution service (including Amazon.com CD fulfillment). Please note this in no way changes your relationship with The Orchard for worldwide digital distribution, or any of the additional artist/label services we offer, and your releases will still be available for purchase by consumers throughout the 2008 Holiday Season.

You have 2 easy options for how you would like your remaining stock handled, though due to the short notice we have been given regarding EDC's shutdown, please note:

If we do not hear from you by December 19, 2008, we'll assume you want your stock on hand destroyed and your physical releases deleted from stores.

Please log-in to your Artist/Label Workstation to select an option for how you would like your physical CD stock handled.
link removed

Thanks again for your prompt attention to this matter.
The Orchard's Artist/Label Relations Team.
_________________________
I am what I am, and that's enough.

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#611391 - 12/10/08 02:36 AM Re: The Orchard to Cease Physical CD Distribution [Re: rnbluvva]
rnbluvva
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Upon further digging, I did find this press release

http://phx.corporate-ir.net/phoenix.zhtml?c=115695&p=irol-newsArticle&ID=1220649&highlight=

Seems UMG bought them and shuffled the assets to Sony DADC, which then smells to me that Indies are parsed out if they don't have something in the UMG or Sony chain.

Oh well...
_________________________
I am what I am, and that's enough.

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#611408 - 12/10/08 08:47 AM Re: The Orchard to Cease Physical CD Distribution [Re: rnbluvva]
Crunch!
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This is all about lack of sustainable volume. Nice idea, but impractical in today's world. Believe me, if the sum total of units shipping was a blip on anyone's radar, they'd keep it going.
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#611547 - 12/10/08 02:16 PM Re: The Orchard to Cease Physical CD Distribution [Re: Crunch!]
Ben Hubbird
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Sorry for the drive-by post, but I thought y'all might like to know that CD Baby is still offering our world class in-store distribution service in partnership with independent one-stop SuperD. Check the details here or give us a call: 1-800-BUY-MY-CD.

We may have been competitors with the Orchard, but It's always a bummer when the majors shut down independent distribution.

Cheers,

Ben
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#611551 - 12/10/08 02:21 PM Re: The Orchard to Cease Physical CD Distribution [Re: Crunch!]
hankiam
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Not their core business.

I don't see the CD going away quickly or quietly. Sales are down 25 percent, but that still means that we've sold 1/3 of a billion of 'em this year alone. Not bad for an item that's "not selling."

And don't be so myopic as to only look at North America, Europe, and the Antipodes. Many "developing nations" still buy CDs as the preferred medium. I know a company that does a tidy bit of business buying used CDs for a buck (or the hardware equivalent thereof) and selling them en masse overseas.

NP: Dan Hicks and the Hot Licks - "How Can I Miss You If You Won't Go Away?"
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At Bookstores and Amazon. Buy 'em, dammit!

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#612475 - 12/12/08 02:56 PM Re: The Orchard to Cease Physical CD Distribution [Re: Ben Hubbird]
Deer Prudence
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Registered: 12/09/08
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 Originally Posted By: Ben Hubbird
Sorry for the drive-by post, but I thought y'all might like to know that CD Baby is still offering our world class in-store distribution service in partnership with independent one-stop SuperD. Check the details here or give us a call: 1-800-BUY-MY-CD.

We may have been competitors with the Orchard, but It's always a bummer when the majors shut down independent distribution.

Cheers,

Ben


I hope that CD Baby has a plan b. The day after you posted this, Super D announced a second round of recent layoffs. CD Baby could easily find themselves in the exact same situation as the orchard within a few months but that still gives you time to prepare. Heer is the internal email pulled from a different thread.

From: Jeff Walker
Sent: Thursday, December 11, 2008 12:41 PM


Team,



I have difficult news to communicate today that due to the economic slowdown we have to trim down our staff and have laid off the following employees:


(List of the name I delete).


This is such a tough decision for me, but it is a necessary decision for the long term success of the company. We are still running Super D profitability and are still very optimistic about our future opportunities and success. As we have had a decline in sales, we must trim up staff to match our current sales volume.



These are the extent of our current adjustments and hopefully sales stabilize and this will be the last one. The best way for everyone including myself to make our jobs as secure as possible is to be fanatical about producing results. This is a time when we all have to continue to evaluate ourselves if we are doing everything possible to produce results. Each of us has to be accountable for our own job security by producing exceptional results.



As we move into 2009 and make these tough decisions, we secure our future and can look for opportunities that will drive to our goal of $500M. We will be the last One Stop standing and the Worlds Largest Music and Video Wholesaler.



Jeff
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#616080 - 12/22/08 06:09 PM Re: The Orchard to Cease Physical CD Distribution [Re: Deer Prudence]
Ben Hubbird
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Just a quick update to this thread -- since we know many indie artists may be affected by this development, CD Baby will provide a discount to our distribution services to musicians and labels that were previously using The Orchard for physical distribution. Call us at 1-800-BUY-MY-CD for more info.

Word,

Ben
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#616147 - 12/22/08 08:06 PM Re: The Orchard to Cease Physical CD Distribution [Re: rnbluvva]
musictyp
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"Seems UMG bought them and shuffled the assets to Sony DADC"

EDC purchased UMG's manufacturing and distribution business several years ago....DADC just purchased the EDC assets
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#616169 - 12/22/08 09:05 PM Re: The Orchard to Cease Physical CD Distribution [Re: Deer Prudence]
QueenSheDevilCow
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I wonder how CDBaby will fair in the next few years. The general decline of the record industry began around 2000, but CDBaby has only grown since then mainly due to signing up more and more artists. With more and more people making music on their home computers, I can see CDBaby doing well into the foreseeable future.
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#616463 - 12/23/08 03:57 PM Re: The Orchard to Cease Physical CD Distribution [Re: QueenSheDevilCow]
Ben Hubbird
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Registered: 12/10/08
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I think part of the reason CD Baby has steadily increased sales in a declining market is that we put a big emphasis on being cool to everyone -- artists, partners and customers. We've grown not just because we're working with more and more artists, but because our customer base is growing along with them.

Not to toot our own horn or anything.

Cheers,

Ben
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