Tower Records

[Bol]

It seems now that Tower.com is not selling any items that they do not currently have in stock. Either there is a terrible computer glitch or they seem to be going out of business.

[BeBop]

Same problem here. Items in my shopping cart from yesterday have become unavailable.

Sorry, this title is not currently available.

We do not know when this title will be available to order.

[vibes]

This is probably why:

(From today's Wall Street Journal)

Music You Can See:

Warner Plans to Sell

Albums on DVDs

By ETHAN SMITH

August 4, 2006; Page A11

The music industry has for years struggled to develop a new physical format that could spark increased sales by replacing the CD. Now Warner Music Group Corp. is planning an aggressive attempt to address the issue by pushing consumers to buy their music on specially outfitted DVDs.

Warner, the world's fourth-largest music company, is in the final stages of securing technical licenses that will enable it to sell a bundle of music and extra features on a single DVD, according to people familiar with the matter. The DVD would include a music album that plays in both stereo and surround-sound on a standard DVD player -- plus video footage that plays on a DVD player or a computer. There will also be song remixes, ring tones, photos and other digital extras that can be accessed on a computer.

The company plans to make the new format available to its subsidiary record labels for product-planning purposes as early as next week and to introduce the discs to consumers with a handful of titles in October. A full-blown launch is planned for early next year. The hope is to fuel increased sales of both new product and catalog titles, in the process lifting the industry just as the 1982 introduction of the CD boosted sales as consumers replaced cassettes and vinyl albums.

Retailers -- who have faced hard times as CD sales have declined in recent years -- have been enthusiastic about the new format. "The CD is getting old and tired," said Jim Litwak, president and chief operating officer of Trans World Entertainment Corp., which owns more than 800 music and media stores, including the Coconuts, Wherehouse and FYE chains. Indeed, MTS Inc.'s Tower Records was recently barred by at least two of the four major music companies from receiving new product, after a dispute over credit arrangements. Interim Tower chief executive Joseph D'Amico didn't respond to requests for comment.

"As a retailer I'm going to be holding on desperately for any compelling physical product," said Eric Levin, who owns two independent stores called Criminal Records in the Atlanta area. "So the introduction of a new format...is cause for excitement." Mr. Levin is also president of the Alliance of Independent Media Stores, a trade association with 30 members, who he said are also pleased by the prospect of the new format. A Warner spokesman declined to comment on specific plans but said the company, broadly speaking, plans to "offer content through a breadth of products to meet consumer needs. And we will remain nimble and innovative in every aspect of our business -- including our digital and physical offerings."

The DVD album is the latest in a parade of would-be successors to the CD, including the surround-sound products Super-Audio CD and DVD-Audio, and most recently DualDisc, which plays like a CD on one side and like a DVD on the other. Warner was one of two companies, along with Sony BMG, to embrace DualDisc last year. But the capacity of both the CD and DVD sides of DualDiscs is limited compared to normal CDs and DVDs. In contrast, the storage capacity of the planned Warner DVDs is up to four times what can be held on the DVD side of a DualDisc. Warner and Sony BMG have sharply scaled back their DualDisc output.

Warner is not proposing any generic name for the new format, beyond simply "DVD album." The company plans to encourage retailers to stock them alongside normal CD albums on shelves, and they would likely carry a higher price tag, though just how much higher will probably be determined by the amount of extras included on any given disc. The company plans to continue releasing albums on CD, too, for the foreseeable future.

But there are some stumbling blocks that may discourage consumers from embracing DVD albums. The new discs would not play on normal CD players, meaning consumers could not simply pop their new discs into their car stereos or other players. And users would not be able to copy the main audio mix onto their computers. On the proposed DVD album, the main audio mix is to be protected by the same software that already protects the content on normal DVDs.

The DVD album would include "preripped" digital tracks of the entire album, ready to be copied onto a user's computer -- a totally separate set of data from the higher-quality, DVD-audio sound that users hear when they slip the DVD in a player. The lower-quality, "preripped" tracks could be copied to a CD.

Richard Greenfield, media analyst at Pali Research, said the DVD album format was unlikely to be of much help to the music industry: "Is it going to be a big deal? I tend to think not, given the failures of previous high end formats. But I don't think it's a bad thing."

People familiar with the situation say Warner is close to a deal with Apple Computer Inc. that would make the digital tracks essentially identical to those the computer company sells through its iTunes Music Store service -- something that has proved elusive for others in the music industry, since Apple has been unwilling to license its proprietary copy-protection software to outsiders. People briefed on the talks said a likely solution would involve Apple creating the digital tracks and Warner putting them on DVDs.

[Bol]

Well, I hope it is only temporary. They can't possibly do business without settling such a dispute.

Edited August 4, 2006 by Bol

[Alexander]

Tower Records has been in a state of steady decline for several years. Stores have closed all over the place. I'm still getting over the fact that Tower closed their Boston store on Newbury and Mass Ave.

[Bol]

I gave them a call, and was told that the situation is temporary. I guess they are trying to iron things out with their distributors.

[BeBop]

Fine time for a one-day sale, eh?

Get $5 Off Your Next Order of $30 or More!

Use Coupon Code: AUGUST4

Plus! Free Standard Shipping!

Free 2nd Business Day Shipping on Orders Over $100!

Online Only. Offer Ends August 4, 2006. Some Restrictions Apply - Click for Details

[Tjazz]

Firms Said to Stop Supplying Tower Records

At least three major music companies suspend deliveries to the struggling retailer, sources say.

By Charles Duhigg and Geoff Boucher, Times Staff Writers

August 4, 2006

At least three major music companies cut off CD shipments to Tower Records on Thursday after record executives said that the iconic music retailer had stopped paying its bills.

Universal Music Group, Warner Music Group Corp. and EMI Group sources confirmed privately that each of the companies had stopped sending albums to the Sacramento-based chain, which has struggled with declining sales as digital technologies have changed the way consumers buy music.

Sony BMG Music Entertainment also suspended shipments, according to industry sources.

The four record companies declined to comment.

The move comes just days after Tower Records named a new chief executive: crisis management and bankruptcy specialist Joseph D'Amico. Tower executives informed record companies this week that they would not pay outstanding invoices, according to sources familiar with the conversations.

Tower executives, including D'Amico, did not return phone calls. A Tower spokesperson declined to comment.

Industry insiders and analysts said it was unclear whether Tower Records had run out of money or was attempting to pressure the record companies to extend better terms.

If the music companies suspend shipments for long, Tower Records could be forced to shutter its 89 locations, including the famous store on Los Angeles' Sunset Strip, analysts said.

Tower Records confirmed Thursday that it was working with a Los Angeles investment bank to sell the company.

The retailer reportedly received at least five bids this year from private equity firms. When a sale failed to materialize, D'Amico was hired in what is the third management shuffle in four years.

The hard line by record companies, insiders said, is a response to Tower's unilateral decision to withhold payments after music executives had extended the chain credit for years.

"There are some music companies that have been trying very hard to keep Tower afloat," said an executive at one of the music companies familiar with the talks who requested anonymity because of the situation's delicacy. "They owe a lot of money."

Music fans bemoaned the potential loss of a retailer that catered to fanatical tastes.

"Led Zeppelin changed my life, AC/DC changed my guitar playing, and Black Sabbath changed my approach to songwriting — and I found all of them because of Tower Records," said Dave Mustain, lead singer of the veteran heavy-metal band Megadeth. "What could they possibly put in the place of that Sunset store? Another Starbucks?"

Others pointed out that Tower Records had averted crises before — most notably in 2004, when the retailer filed for bankruptcy protection but emerged less than a month later, after bondholders took control of 85% of the company's stock.

"Being on hold doesn't mean Tower is going to close up shop tomorrow, but it means they need a serious plan," said Geoff Mayfield, senior analyst at the music industry trade publication Billboard. "The industry isn't in a hurry to lose another retailer. There will be a lot of people who will want to support them in coming up with a plan."

Tower Records began in 1960, when a music enthusiast named Russ Solomon began selling records out of his father's Sacramento drugstore. In less than a decade, Tower Records expanded to San Francisco and Los Angeles, and soon thereafter across the nation and abroad.

Tower pioneered the mega-store concept, building multilevel stores with exhaustive inventories and passionate and knowledgeable staffs. Tower's late-night hours and in-store concerts drew crowds.

By the mid-1990s, Solomon was listed by Forbes magazine as one of America's richest men. Amid soaring profit, the company launched a major expansion financed by bonds worth $110 million.

But soon afterward, profit at Tower Records and other music-only retailers began to decline amid pressure from Internet piracy and chains such as Best Buy Co. and Wal-Mart Stores Inc. Retail music sales decreased by 17% from 2000 to 2005, according to the Recording Industry Assn. of America.

In 2003, Tower's parent company, MTS Inc., tried to sell the retailer after it defaulted on a $5.2-million payment, but there were no takers. Less than a year later, the Solomon family lost all but 15% of the company after it filed for bankruptcy protection.

This year the company installed in-store kiosks that would eventually allow customers to burn compilation CDs of current and out-of-stock songs. Last month the company launched a digital store where listeners could download individual tracks for 99 cents apiece. Industry analysts said the efforts were gaining traction.

LA TIMES article

[BruceH]

Tower Records has been in a state of steady decline for several years. Stores have closed all over the place. I'm still getting over the fact that Tower closed their Boston store on Newbury and Mass Ave.

Yes, and ones that haven't closed have slashed their jazz sections down to microscopic size. Sad.

[jeffrey r]

Tower Records has been in a state of steady decline for several years. Stores have closed all over the place. I'm still getting over the fact that Tower closed their Boston store on Newbury and Mass Ave.

Yes, and ones that haven't closed have slashed their jazz sections down to microscopic size. Sad.

Fortunately, not true for my local Tower on the upper west side of Manhattan near Lincoln Center. It has a huge jazz section downstairs with a big selection. They converted the whole downstairs into jazz, blues, oldies, soul, etc. I spend a lot of time in there.

[Chuck Nessa]

Sorry to hear this. Back in my retail days I met Russ Solomon, the founder and liked him a lot. He changed the face of record sales. He lost control a few years ago but Tower's problems still bother me.

I also like their online search features. Hope they can pull it out.

[Big Al]

Fortunately, not true for my local Tower on the upper west side of Manhattan near Lincoln Center. It has a huge jazz section downstairs with a big selection. They converted the whole downstairs into jazz, blues, oldies, soul, etc. I spend a lot of time in there.

The Dallas store is like that as well.

[kh1958]

Fortunately, not true for my local Tower on the upper west side of Manhattan near Lincoln Center. It has a huge jazz section downstairs with a big selection. They converted the whole downstairs into jazz, blues, oldies, soul, etc. I spend a lot of time in there.

The Dallas store is like that as well.

It's the only real CD store left in Dallas. I would hate to see it close.

[bluesbro]

There are a couple in suburban DC, the one I frequent has a healthy jazz and classical section. I cant imagine it closing down. I may go tomorrow and pick a couple more of those 9.99 Impulse digipacks.

[Eric]

Tower Records has been in a state of steady decline for several years. Stores have closed all over the place. I'm still getting over the fact that Tower closed their Boston store on Newbury and Mass Ave.

Yes, and ones that haven't closed have slashed their jazz sections down to microscopic size. Sad.

Fortunately, not true for my local Tower on the upper west side of Manhattan near Lincoln Center. It has a huge jazz section downstairs with a big selection. They converted the whole downstairs into jazz, blues, oldies, soul, etc. I spend a lot of time in there.

COOL!!! I have been going there for years (as an out-of-towner) and look forward to checking it out.

[rostasi]

It's the only real CD store left in Dallas. I would hate to see it close.

Yup...going there has involved a late night ritual for me.

Usually a trip out to the Cosmic Cafe for a late dinner,

then 'round the corner for a late night peek at what's come out.

Love going there late at night with the basement nearly all to myself.

Actually, the magazines are the big draw for me,

since many of the book stores stopped carrying lots of stuff.

Haven't been in a while...so tomorrow night it is!

R~~

[BeBop]

A bad sign, methinks.

Another one-day sale, same as yesterday.

(Cash flow, cash flow, cash flow...)

[Free For All]

If it is indeed coming to an end it's a shame. I have fond memories of seeking out Tower Record stores in pretty much any major city when I was on the road. For example, I remember buying the Miles side Aura at a Tower in Sacramento the day of the big earthquake in San Francisco.

If it's true, it's the end of an era.

[GA Russell]

In August of '73 I drove across the country from New Jersey to San Francisco with a buddy. When in Los Angeles we stopped at the Tower on the Sunset Strip. I had never seen such a place. I remember buying Mark Murphy's first Muse LP, Bridging a Gap, which was new at the time.

[sidewinder]

In August of '73 I drove across the country from New Jersey to San Francisco with a buddy. When in Los Angeles we stopped at the Tower on the Sunset Strip. I had never seen such a place. I remember buying Mark Murphy's first Muse LP, Bridging a Gap, which was new at the time.

Ah, the memories of that fine emporium . Picked up lots of Japanese import Blue Note titles there (including a rare sighting for the time of the Tyrone Washington). The range they had in the early to mid 1990s was pretty astonishing.

[jeffrey r]

Somewhat symbolic of what is both good and bad with B&M record stores like Tower--I recently decided to stock up on more Mingus records from the Oh Yeah, Blues & Roots, era. So I started looking at some individual albums, then was browsing on Rhino's website and noticed they had the Passions of a Man boxset that covered every album I was planning on buying. Perfect.

So I stop into Tower yesterday (the Lincoln Center one I referred to earlier) where they have a decent collection of Jazz boxsets, and sure enough they have the Mingus boxset. Of course, I had researched the price before going to Tower, and deepdiscount CD had it for about $67, and Overstock had it for about $50 with coupon. So I knew the ballpark.

Well, Tower had it for full retail, $79.98. Add tax to that and it would have cost me about $86. I'm all for instant gratification, but that's a $36 difference with Overstock. Needless to say, I didn't buy it at Tower.

Other than their occasional sales like the recent Impulse sale, I love browsing, but with yourmusic and other e-tailers around, Tower is just too overpriced generally.

[rostasi]

Oh yes! and I've said this before...let's say that you want to buy a new

Morton Feldman or John Cage disc on Mode records.

They price them at $18.99 for single discs and $35.99 for doubles (!!??)

which is way more than the $14.99 list for single discs from Mode itself.

This is what keeps me from buying most CDs there...

and I agree with Jeffrey about the occasional sale.

Rod

Edited August 6, 2006 by rostasi

[Matthew]

Speaking of prices: Why don't the B&M figure out that the lower the price, the more people will spend on cds? I would buy a lot more if the prices went down at Tower's but, outside of a sale, that never happens. A good example is the Concord sale; I bought way more cds that I never ever thought of getting because of price. Now, with all the orders Concord are getting, they have a nice cash influx. I know there has to be a mark up for running a B&M but sometimes the prices are ridiculous.

[catesta]

"Led Zeppelin changed my life, AC/DC changed my guitar playing, and Black Sabbath changed my approach to songwriting — and I found all of them because of Tower Records," said Dave Mustain, lead singer of the veteran heavy-metal band Megadeth. "What could they possibly put in the place of that Sunset store? Another Starbucks?"

To me this says a lot.

While I do buy some cds online, I've always preferred to go to the stores and spend some time searching through the bins. As previously noted some of the Tower stores have actually improved the selection of jazz and created special room in the stores.

[BeBop]

Another one-day sale.

Get $10 Off Your Next Order of $75 or More!

Use Coupon Code: AUGUST6

Plus! Free Standard Shipping!

Free 2nd Business Day Shipping on Orders Over $100!

Online Only. Offer Ends August 6, 2006. Some Restrictions Apply - Click for Details