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November 12, 2008

Now That's What I Call Music Faces The Future

Sales of the NOW That's What I Call Music! series are slipping but it remains a successful business and is worth a look to consider their future:

"'Now That's What I Call Music!,' has been a reliable blockbuster for 10 years by sticking to a simple, recognizable brand. With a festive, uniform design aimed at the young, especially tween girls, the 'Now' CDs each contain 20 'chart-topping hits' — Britney Spears has been featured 12 times — and its 28 volumes have sold 61 million copies in the United States."

However, the basis of their success lies among those who purchase cds:

"'There's a type of consumer that still buys physical, and they're primed for this'...The 'Now' series...'will last to the extent that the physical market exists.'"

With albums sales declining:

"They have introduced a series of supplemental CDs, like 'Now That's What I Call Country,' and are moving into an array of media. New CDs will allow access to a Web site featuring acts below the usual superstar radar, and a deal with Dada, a cellphone-services company, will offer extra promotion of songs and ringtones from 'Now' artists. In addition, the 'Now' team is in talks to create a network television show to highlight its acts, according to people close to the negotiations who were not authorized to speak."

These sound like some good ideas to work with but it's hard not to feel that the end is near for these guys.


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