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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Entertainment > Article Home Business & Finance News U.S. Politics International Technology Entertainment Film Music People Television Arts Industry Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Devoted music fans pay top dollar for deluxe sets Fri Mar 27, 2009 9:39pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Cortney Harding NEW YORK (Billboard) - During the past two years, one 29-year-old Bay Area music fan reckons she's spent about $200 on music. She gets most of her music for free from blogs and BitTorrent trackers, but one recent release struck her as cool enough to get her to lay down her credit card. That album, a deluxe reissue of the Beastie Boys album "Paul's Boutique," cost more than she spends on music in most years. This freeloading fan isn't alone: As of the end of February, the $129.99 deluxe edition of "Paul's Boutique" had almost sold out its run of "a few hundred" copies. Released by EMI and the online music marketing company Topspin, and sold only on the Beastie Boys' Web site, the package includes a 180-gram vinyl copy of the album, a poster and a T-shirt in addition to a CD copy and a high-quality digital download. So far, it has sold as many copies as the lowest-priced reissue of the album, an $11.99 download, according to Topspin founder Ian Rogers. (The album is also available on CD, vinyl and high-quality digital download.) In an era when labels have to beg or sue most fans to get them to pay $10 or $15 for a plain old CD, some bands are getting a few to lay out more than $100. During the past few years, a number of bands have released deluxe versions of their new albums, including Radiohead, Nine Inch Nails and U2 (the group just released a high-ticket version of "No Line on the Horizon.") In the next few months, this trickle will become a flood of albums that will sell for more than $50: an edition of Depeche Mode's "Sounds of the Universe" will include two hardbound books of photos; a set of unreleased Jane's Addiction tracks will come in a wooden box; and a reissue of Pearl Jam's "Ten" will come with an extra CD, a DVD and four vinyl records in a linen-covered, slipcased box with a replica of a demo cassette made by frontman Eddie Vedder. THE RALPH LAUREN EFFECT At first there's something almost absurd about the idea that fans who can get music for free would spend so much money on albums. The decline in CD sales shows no sign of reversing, and a generation of listeners have come to see music as something that resides only on a hard drive. Then again, this is the same generation that has come to see coffee as something that costs $4. And the fact that water comes out of the tap for free hasn't prevented the growth of a large business based on selling it in bottles. As with bottled water, the right packaging and presentation can create a perception of value in the minds of consumers. Albums, like art books, can have a value apart from the content they hold -- especially if they look good on a coffee table. "It's a human response -- if you're really fanatical about something, you want something physical," says Chris Hufford, who co-manages Radiohead with Bryce Edge. "It gives you an additional level of ownership. And if you're going to get something, you might as well get something good." High-end packages also give fans the kind of bragging rights that reinforce their sense of being involved with a particular artist. "Even though some bands are everywhere, you get a sense that you're not connected to them in any meaningful way," says Jeff Anderson, the founder of Artists in Residence, who sold a high-end edition of Nine Inch Nails' "Ghosts I-IV," that sold 2,500 $300 copies in a single weekend. "What I try to do is create a collectible. People don't want to pay a ton of money for something that feels like a repackaged good. They want a new piece, and they want something that signifies their identity as a fan." And these packages -- as different from old-fashioned boxed sets as CDs are from record albums -- look more like collectibles than mere discs of music. In some cases, the high prices they sell for may even help convince consumers that they're worth buying. "It's the Ralph Lauren effect: If you charge more for it, people will think it's really good," Marjorie Scardino, CEO of media company Pearson, said in a keynote address at the SIIA Industry Summit, a gathering of information industry leaders. "With newspapers, we've been able to price it too low for too long. I mean, a newspaper costs less than the price of a latte. We pushed the price up at the Financial Times and we found that our readership went up." EXPRESSIONS OF DEVOTION Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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