The Jackson Effect

Billboard.biz reported a rise in total album sales. I have thoughtfully called this, “The Jackson Effect”.

In the first full week after Michael Jackson’s death, total album sales shot up to nearly seven million units, a level not seen since early April. Track sales dropped 1% but had risen 9% the prior week, the first full week after Jackson’s death. Track sales in each of the last two weeks exceeded 23 million units, a level not seen since the week ending April 12.

Surely many of these album sales were titles such as “Off the Wall”, “Thiller”, and “The Essential Michael Jackson”. The funniest part is that although album sales had gone up in titles besides Michael Jackson’s albums, digital sales were not affected in these other titles.

In general, albums fared better last week as Sony Music pushed physical product to retail and Jackson received less media coverage. In the week of Jackson’s death, consumers flocked to online retail but the traffic did not benefit other titles. While digital album sales rose 12% that week, total album sales dropped 8% and sales of most current releases languished. Last week, the rush to physical product appears to have driven total sales and helped other titles.

What a difference it actually makes walking into a physical retailer. Here is where “The Jackson Effect” comes into play.

Scenario 1: MJ Fan #1 is devastated with Jackson’s death but is at work and cannot leave his cubicle to console himself with “Dirty Diana”. Best option? He downloads the song from his iPhone 3G S via Apple iTunes, and the nostalgic grieving can begin.

Scenario 2: MJ Fan #2 is also devastated with Jackson’s death, but she has to pick up the kids from school and make a run to Target for some anti-wrinkle serum and a Jackson album to heal her soul. While the kids are fighting over the Hannah Montana doll in aisle thirteen, MJ Fan #2 sees a “Michael Jackson’s Greatest Hits” in the bins. She grabs that, but right next to it is the latest Jonas Brothers concert CD entitled, “Jonas Brothers: The Concert Experience”. She thinks, this would be something fun for the kids to listen to on the way home. And now MJ Fan #2 is walking out with her Jackson album, anti-wrinkle cream, and what seems to be another album that just happened to be sitting in the “J” section at Target.

Apart from our move to digital packaging, the lack of customers at physical retailers have been a contributor to the decline of album sales. It reminds me of the classic loss leader example one of my professors gave to justify The Guns N’ Roses deal with Best Buy. You’d walk in buying the CD, and walk out with the CD AND a new refrigerator.

So will “The Jackson Effect” heal the world of lacking album sales? No, but it is nice to know that the majors and some artists can enjoy a little recoupment for now.

Kateri Lirio (Cal Poly Pomona)

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