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Baby boomers give second life to older
rockers
By David Lieberman, USA TODAY
NEW YORK — Rock and pop band Styx had a
simple idea in 1996. More than a decade after the original
lineup split, members planned to reunite for a one-shot tour
to give their now middle-age fans a trip down memory lane,
listening to 1970s hits including Babe and Come Sail
Away.
But once they hit the road, they saw a
surprising phenomenon.
"The fans were there like we'd never
left," says singer-guitarist Tommy Shaw, who'd left Styx in
1983. "We went from being a band that got back together to go
around the block one more time, and got focused."
Since then, Styx tours have consistently
been among the year's 50 top grossers. They now plan to return
to the studio to record new songs.
They stumbled on a trend in music that
either intrigues or befuddles many in the troubled,
youth-obsessed industry. Baby boomers are back.
"The population is aging, and we're
finding that (older) consumers are more musically active than
they were 10 years ago," says David Weyner, general manager of
Bertelsmann's adult-oriented RCA Victor Group.
While teens and young adults still
dominate the market, their hold is weakening. The over-35
crowd bought about 44% of music sold in 2000, the last year
for which industry figures are available, up from about 28% in
1991.
And they aren't just interested in aging
rockers. A generation that grew up on eclectic Top 40 is also
turning on to blues, roots music, world music, jazz,
soundtracks, show tunes and New Age.
Older buyers were key to the surprising
success last year of the Beatles' 1 greatest hits
collection, the bluegrass O Brother, Where Art Thou?
soundtrack and New Age performer Enya's A Day Without
Rain.
"I was exposed to Miles Davis along with
Jethro Tull in a more free-flowing way than kids are now,"
Weyner says. "You have an incredibly educated music consumer
from a time when we still had music education."
To a limited extent, over-35 fans also
are regaining status as trendsetters.
"I see a lot of younger people out there"
at concerts, says Bad Company singer Paul Rogers, who rejoined
the band in 1998. "It's going across the generations as
parents play music for their kids."
Older fans' growing interest in music
also is one of the few bright spots for a business in a
funk.
The companies that dominate music —
Vivendi Universal, Bertelsmann, AOL Time Warner, Sony and EMI
— watched in frustration last year as hitmakers such as the
Backstreet Boys, Britney Spears, Lenny Kravitz, Madonna, Jewel
and Garth Brooks failed to match earlier successes. (Four of
the five companies also had no executives willing to comment
for this story.)
Nobody epitomized the maddeningly fickle
nature of pop better than Mariah Carey. A best-selling singer
in the 1990s, her latest release, Glitter, bombed. U.S.
sales of only about 500,000 copies resulted in an estimated
$10 million loss for EMI. The company decided in January to
cut its losses and pay her $28 million to get out of their
multi-album contract.
"The bloom is off the rose for pop, and
we're waiting for the next new thing," says former Bertelsmann
Music Group chief Strauss Zelnick, who now runs investment
firm ZelnickMedia.
Music executives want something to happen
soon. Unit sales last year of album-length CDs and cassettes
fell nearly 3%, to about 763 million.
But there's no turnaround in sight.
Retailers sold 6.6% fewer albums in the first few weeks of
2002 than in the comparable period last year. Total revenue
from music sales — which dropped from $14 billion in 2000 to
$13 billion in 2001 — will inch to $13.1 billion in 2002,
Sanford C. Bernstein analyst Michael Nathanson estimates.
Several problems are exacerbating the
music malaise.
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Niche listening. It's tough to find acts that can
thrill a mass audience as fans devote themselves to
ever-narrower genres. For example, rock radio
listeners often can choose between stations offering
mainstream rock, modern rock and classic rock. And
there are three formats of classic rock: "basic" (Pink
Floyd, Aerosmith), "classic hits" (Fleetwood Mac,
Eagles) and "classic rock that really rocks" (Black
Sabbath, Motley Crüe).
The
Internet. Piracy eats into sales, though the
degree is unknown. But even legal downloads might
drive revenue down. They give fans the freedom to
spend a few bucks for songs they want, instead of $15
or more for an entire album.
Attention deficit. New distractions, including
video games and DVDs, are offering stiff competition
for young consumers' entertainment time and dollars.
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"From 1996 to 2001, there's been no
growth in worldwide unit sales — none," Nathanson says. "It's
a bigger issue than just getting a few more hits."
Oldies not always seen as goodies
With all this uncertainty in pop music,
you might expect executives to cultivate the growing, loyal
and affluent older audience.
Not so. Many music companies consider it
a distraction from their main mission: finding the next hot
trend while keeping costs low. Those imperatives prompted
several labels to drop veteran acts.
"It's amazing how disposable major labels
consider artists to be. They flip people the way some flip
stocks," says Tom Lipsky, president of Sanctuary Records Group
North America, a company that specializes in older bands. "A
major label requires a lot of fuel to generate its
international machine, and that requires big sales. Their core
model is to market to teenagers and young adults. They can't
afford to concentrate on niche marketing."
That has opened a big opportunity for
Sanctuary, as well as other, smaller, labels. It won gold
records (at least 500,000 copies sold) and gold DVDs (at least
50,000 sold) for the CD and video versions of Lynyrd Skynyrd's
Lyve From Steel Town and Styx's Return to Paradise
performance.
Those sales might pale next to those for
'N Sync. But the strategy let Sanctuary, publicly
traded in London, defy the music industry recession. It nearly
doubled revenue and net profit in the year ended Sept. 30.
It takes effort, though, to find venues
where older listeners can hear new music or learn about
reissues.
Concerts are key.
"We usually will not sign a band unless
they're actively touring," Lipsky says. "We intensely market
at tour sites." One reason: "The new records these groups put
out don't get the overwhelming acceptance of radio."
Some radio executives say labels blunder
by not buying ads for veteran bands' new releases and boxed
sets on the 618 classic rock stations.
"There's never been a time when this kind
of situation existed," says Fred Jacobs, president of Jacobs
Media, a consulting firm that helped to develop the format in
1984. "There are so many potential buyers out there who aren't
aware that this material exists. Classic rock stations don't
exist in the eyes of most record companies."
But record companies don't deserve all
the blame. Many classic rock stations won't play new music.
And many performers don't believe radio ads sell albums.
"Most smart managers and artists, when
they do a marketing campaign, ask that most of the money be
spent on TV advertising," says TBA Entertainment's Charlie
Brusco, who manages veteran acts including Journey, Foreigner
and Eddie Money. "A lot of people pick up the phone and order
(CDs). They don't want to be bothered going to stores."
Finding fans
Since the older audience is hard to pin
down, and has such varied taste, performers hunt for
unconventional venues to reach it.
Many crave airtime on NBC's venerable
Today show and VH1's Behind the Music. "When
artists are on, you see a big jump in their catalog sales,"
Brusco says.
Older performers also get a jolt when
advertisers use their work. Bad Company saw the medium's power
when Burger King used its hit Can't Get Enough.
"I hate to mention it, but some of the
ads have kept the songs alive," says Rogers. Styx's revival is
due, in part, to Volkswagen's use of its Mr. Roboto,
Shaw says.
Perhaps the best example of an ad selling
music was when Sting's album Brand New Day took off
after Jaguar featured him and his tune Desert Rose in
ads.
But older acts also reach fans through
non-commercial media. For example, PBS stations frequently air
classic pop (and popular classical) concerts to draw viewers
to fund-raising telethons.
"Public TV has been absolutely essential,
ever since (stations broadcast) The Three Tenors,"
Weyner says. "Those shows were the match that lit the flame."
National Public Radio's flagship shows,
Morning Edition and All Things Considered, also
have become powerful promoters of new, adult-oriented music.
Singer-songwriter Oh Susanna learned that
in January. Sleepy Little Sailor was the 50,631st
best-selling CD on Amazon.com the day before she was featured
on All Things Considered. The next day, it leapt to No.
124.
Even the musical interludes between
different news and feature stories generate sales. NPR
highlights many of them on its Web site, which has a page
called "All Songs Considered."
"Guitarists Martin Simpson and Adrien
Legg are two we've featured," says All Things Considered
director Bob Boilen. And listeners couldn't get enough of
Hawaiian singer Israel "IZ" Kamakawiwo'ole's rendition of
Somewhere Over the Rainbow.
"There are millions of us out there,"
Boilen says. "We're music starved. I get letters every day
that start, 'Thank you, thank you.'" |