Plan to Eliminate Longbox Packaging Submitted to Labels…

The Ban the Box coalition has forwarded a proposal to eliminate longbox packaging by July 1, 1991, to top-ranking executives of major U.S. record labels.

The plan calls for labels to issue to retailers a one-time, 5 percent cost credit for each compact disc sold during the last six months of 1990.

According to the proposal, retailers will receive the cost credit in the first quarter of 1991 to purchase new fixtures or devices such as reusable, 6-by-12-inch plastic frames that fit in existing CD display racks.

The plan calls for labels to ship CDs without longboxes starting July 1, 1991.

It is also recommended that record companies recoup their costs in the last six months of 1991 and commit to a 5 percent wholesale CD price reduction that reflects the elimination of longbox packaging expenses beginning Jan. 1, 1992.

“Both labels and retailers have reached a consensus that the longbox must be eliminated,” said Robert Simonds, chief financial officer of Rykodisc and Ban the Box founder. “The plan’s purpose is to ensure that retailers are not burdened with the full cost of refixturing for jewel boxed only CDs.”

Simonds said that retailers are willing to phase out longboxes if they are assured that labels will provide financial assistance for refixuring expenses.

The move to jewel boxed CDs will ultimately generate cost savings since labels, distributors and retailers will be able to ship, warehouse and stock more than twice the amount of compact discs in the space once occupied by longboxed CDs, Simonds explained.

Global Standard

Use of jewel boxes, and their paperboard counterparts, in the U.S. for compact discs will create a worldwide standard for CD merchandising.

Currently, the U.S. is the only country to market compact discs in extraneous longbox packaging. All other countries throughout the world sell discs in jewel boxes.

Studies indicate that more than 90 percent of consumers will continue to purchase the same amount of compact discs when they are not housed in longboxes.

And retailers in Canada, where longboxes were abandoned on April 1, 1990, report increased sales when customers are able to closely examine jewel boxed-only product.

Artists Voice Support

U2, Sting and Joan Jett have asked that their labels release their next albums without disposable packaging.

Their actions follow Raffi’s new recording contract with MCA stipulating that his CD and cassette release not be issued in longboxes or other wasteful packaging.

Mounting support from artists has challenged the industry to resolve the longbox issue before retailers are forced to deal with dissimilar merchandising formats.

U2, Jett, Phil Collins, and Ringo Starr Among New BTB Members

Apart from voicing concern regarding their own CD packaging, U2 and Joan Jett join a number of major recording artists who support the efforts of the Ban the Box coalition.

Other artists who have recently become members of the group include: Ringo Starr, Jackson Browne, Phil Collins, Shawn Colvin, Dire Straits, Living Colour, Lenny Kravitz, Genesis, the Neville Brothers, Suzanne Vega, Buckwheat Zydeco, Shawn Colvin, Bobby McFerrin, Julian Lennon, Orchestral Maneuvers in the Dark, Joe Jackson, Jane Wiedlin, the Fixx, R.E.O. Speedwagon, the Escape Club, the Blue Nile, Everything But the Girl, Pierce Turner, Steven Kindler, Steve Kilbey, and artist management company Seriously, Inc.

Other members of the coalition include: Rykodisc, Rhino Records, Grateful Dead, R.E.M., David Byrne, Olivia Newton-John, Belinda Carlisle, Kris Kristofferson, Fantasy Records, Smithsonian/Folkways Records, Rounder Records, the Ramones, the B-52’s, Crosby, Stills & Nash, Indigo Girls, 10,000 Maniacs, Dog Gone Records, PACE Concerts, Earth Communications Office (ECO), Paul Westerberg, Hannibal/Carthage Records, Jerry Harrison, Rosanne Cash, John Hiatt, Trip Shakespeare, Raffi, Kimm Rogers, Global Pacific Records, SST Records, Q Prime Inc., Concerts for the Environment, Mike Bone, Original Artists president Linda Goldstein, and artist manager Danny Goldberg.

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