Friday, January 30, 2004
The timing of this lawsuit alleging Def Jam inflated Soundscan numbers through indie promoters is suspect: a few days after Lyor is gone? Hmmm. I mean, who in the industry hasn't seen these schemes in action?

Here's how it works: Tiny indie stores that are Billboard reporters are weighted a little stronger than the big chains--this is a mathematical adjustment for statistical undercounting. So a label finds an indie promoter finds a tiny indie store Billboard reporter who ain't doing so hot, or is willing to work it, gives him several boxes of non-promo CDs as free goods off the books, usually a week early. Guy advertises that he's the only one in the hood with these highly anticipated CDs, and he's offering it for under $10. Multiply this by a thousands stores and bam, first week gold.

I imagine it's probably gotten worse in the past 3 years but clearly Def Jam is not the only one out there doing this.


posted by Zentronix @ 7:50 AM   0 comments

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