Apple, labels collaborating to revive digital album sales

Apple is reportedly working with the four major record labels--EMI, Sony Music, Warner Music and Universal Music Group--on an effort to stimulate digital sales of full-length albums via the addition of a new interactive booklet including sleeve notes and related supplementary features. Apple's iTunes digital media platform is typically cited as the catalyst behind the decline of physical album sales as consumers have shifted their buying habits to downloads, often favoring individual tracks over full-length releases--Nielsen SoundScan data indicates that album sales in the U.S. dropped 14 percent in 2008 to 428.4 million units. But The Financial Times, citing four people familiar with the situation, reports Apple and its label partners are now at work on a project codenamed "Cocktail," which will bundle liner notes, photos and video clips exclusive to album downloads: "It's all about re-creating the heyday of the album when you would sit around with your friends looking at the artwork, while you listened to the music," said one executive familiar with the project.

Apple and the labels are said to be planning a September launch for Cocktail, in advance of traditional holiday season sales. Plans call for Cocktail content to emphasize user interactivity--for example, a listener would be able to play songs directly from the liner notes without clicking back into the iTunes software. "It's not just a bunch of PDFs," said one executive. "There's real engagement with the ancillary stuff."

The Cocktail initiative corresponds with Apple's reported development of a touch-sensitive tablet computer scheduled to hit retail prior to the Christmas season. Sources indicate the device will not offer voice services, but will connect to the web a la the iPod touch, enabling consumers to download premium content from the iTunes storefront.

For more on Cocktail:
- read this Financial Times article

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