The Dallas Morning News Cheryl Hall Column: Dallas Exec Matches Up Retailers and Big-Time Recording Artists
Posted on: Sunday, 18 December 2005, 21:00 CST
By The Dallas Morning News, The Dallas Morning News
Dec. 18--Chris Christian has already experienced his Christmas miracle.
His fledgling company, Dallas-based WDMG, managed to sign, seal and deliver six holiday CDs featuring nearly two dozen major recording artists to 7,000 stores nationwide. It pulled off this feat in less than three months.
We're talking Willie Nelson, Amy Grant, the Pointer Sisters, Jesse McCartney, Al Jarreau, Natalie Cole, Jim Brickman and Vanessa Williams, among others. Many of the 76 tracks are brand-new carols or updated renditions. They're all owned or licensed by this small company across from the Quadrangle.
And if you want any of these six Christmas CDs, you'll have to go to RadioShack.
Two years ago, Mr. Christian and the folks from RadioShack Corp. headquarters got together for a "kick-the-tires discussion" and discovered they were headed down the same road.
The idea: Offer music straight from the artist to the consumer.
The result is WDMG, which stands for World Digital Media Group LLC, a consortium created in March by Mr. Christian's CC Entertainment LLC, RadioShack, Dish Network and Sirius Satellite Radio.
Universal Music Group, the world's largest content owner and music distributor, has agreed to distribute WDMG's recordings being sold under its YMC (Your Music Channel) label. The Dallas company expects to produce 15 projects in 2006, including several holiday CDs for Universal.
Retailers are looking for exclusive products to drive in customers. Artists are looking for ways to rise above the thousands of CDs stuffed in traditional record bins.
Consumers like the spontaneity of picking up a CD at the counter for $10 or less.
"What's not to love?" says Mr. Christian, who's been in music for 30-plus years as a performer, Grammy-winning songwriter and producer who launched Amy Grant's career in 1978.
1.4 million copies
He points to a sheet of retailing logos not known for selling music: J.C. Penney, the Gap, Starbucks and Victoria's Secret have all created customized music compilations.
Last Christmas, Hallmark Cards Inc. sold 1.5 million special James Taylor CDs in its 4,000 Gold Crown stores. By comparison, the hottest holiday CD produced by a major record label last year was Clay Aiken's, which sold 753,000 copies.
"I believe in three years, every retailer with a major national footprint will be offering selected music that meets their demographics," says Mr. Christian, adding that he expects WDMG to get a portly slice of that business.
No one has ever accused Chris Christian of thinking small.
Around here, Mr. Christian is best known as the owner of the Studios at Las Colinas, which he hoped to make the Third Coast of Moviedom. His unfulfilled dream was officially dashed three years ago when he sold the Irving complex.
Undaunted, Mr. Christian says he's happily returned to his roots. "I wanted to try the movie business, and I learned it pretty well. But I realized that at my core, I'm a songwriter."
Leveling the field
Major record companies and big music retailers used to have a chokehold on what consumers heard and bought, Mr. Christian says. Now anyone can produce an album on a laptop in a bedroom and distribute it via the Internet. The big issue is getting consumers to take notice.
"The music pyramid has collapsed, and the Internet has leveled the playing field," says Mr. Christian. "But there are still a limited number of people who can push through the sea of the Internet and get their music seen and heard on a national level. Our partners open up avenues of major advantages."
RadioShack is keeping mum about its strategy and early results of this project except to say that it wants to learn more about the music content business.
Next spring, WDMG plans to launch its YMC cable channel on Dish Network with at least 11.5 million households. It will feature independent music and videos.
Just what is independent music?
"Ten years ago, it meant a garage band," he says. "Today, it's the largest segment of the music business because so many stars are independents."
Most of the music for the first six CDs was recorded at WDGM's studios in Dallas, the vocals in L.A.
Big names sell
"With point of purchase, recognized names are very important," he says, holding a copy of Totally Awesome Christmas, done in partnership with Walt Disney Co.'s Hollywood Records label. That's why Mr. Christian led the pop CD with teenage heartthrob Jesse McCartney.
"Jordan Pruitt, who is on this CD, is going to be a big star. But today you don't know Jordan Pruitt."
Slightly more than 80 percent of all music is still sold as CDs, he says. Less than 6 percent is legal downloads. But that's shifting quickly.
"The final home of music delivery is going to be the cellphone. Do you know who's one of the largest sellers of cellphones?" Mr. Christian asks. "RadioShack.
"Companies that sell cellphones and control bandwidth are going to be a main source of music distribution. AT&T is down in San Antonio, Verizon is in Irving, and RadioShack is in Fort Worth. We have the corporate headquarters of retailers that will be buying the music.
"In the next five years, Texas could very likely become the hub of music distribution in the United States."
Also consider how many shooting stars have cut loose from these parts: Kelly Clarkson, Norah Jones, the Dixie Chicks, Los Lonely Boys, Bowling for Soup, Beyonce and Pat Green. "It's amazing."
Hmmm.
Sounds like Mr. Christian is thinking about that third coast again.
E-mail cherylhall@dallasnews.com
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Source: The Dallas Morning News
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