A long and winding road for local music industry<\/p>\n
By Helly Minarti<\/p>\n
JAKARTA (JP): Piles of cassettes and compact discs (CDs) are
\ntaken off the shelves of a music store in Central Jakarta. And,
\nfor the second time in as many months, an employee is busy
\nreplacing the price tags.<\/p>\n
The woman who owns and manages the store holds up a fax she
\nhas just received from a recording company.<\/p>\n
\"See, it's up again...,\" she said. \"CD prices have jumped
\nthree times since December, from Rp 32,500 to Rp 40,000, then Rp
\n55,000 and now Rp 70,000.\"<\/p>\n
Cassettes of Indonesian artists now retail for between Rp
\n10,000 and Rp 15,000 while those of international artists sell
\nfor Rp 13,000 to Rp 17,000.<\/p>\n
The music store owner, who did not want to be identified, said
\nsales had dropped 20 percent to 30 percent since the crisis
\nbegan.<\/p>\n
But the shop's revenue is faring better than her other outlet
\nsouth of Jakarta.<\/p>\n
\"The location is very important. This one (in Central Jakarta)
\nis close to where the tourists hang out. They help boost the
\nsales -- especially CDs,\" she said.<\/p>\n
The shop offers a wide variety of music and artists -- major
\nlabels account for 70 percent of the stock.<\/p>\n
Before the crisis, if a cassette or CD was not in stock she
\ncould chase down best sellers -- such as the Titanic soundtrack
\nand Spice Girls or Aqua albums -- in Singapore. This is a luxury
\nshe can no longer afford.<\/p>\n
But despite declining sales, she still manages a profit of
\nbetween 15 percent and 25 percent.<\/p>\n
The news is even gloomier for producers who must meet the
\nskyrocketing costs.<\/p>\n
\"It's slowing down,\" Yoki Agustian, the promotion manager for
\nWarner Music Indonesia (WMI), said.<\/p>\n
A source said the 40 percent decline in sales was a sign of
\nthings to come as the price of tapes, plastic packaging and tape
\ncovers, as well as printing cost, were all much higher.<\/p>\n
\"We still released the albums of some artists in January but
\nwe have to be very picky,\" Yoki said.<\/p>\n
Only those with big names and lots of fans will get a chance
\nto release their latest songs.<\/p>\n
In January, WMI released Kris Dayanti's solo album which had
\nbeen \"quite successful\" with 25,000 copies sold in the first four
\nweeks, he said, thanks to Kris' leading role in a teleserial. WMI
\nwill soon release the latest album of Desi Fitri, also a TV star.<\/p>\n
On the international scene, WMI has a commitment with its
\nworldwide network to release albums here according to its
\ninternational schedule. Madonna's new album, for example, is
\nexpected to hit the stands in March.<\/p>\n
Becoming selective in choosing artists and cutting back on the
\npromotion budget is part of Sony Music Indonesia (SMI)'s
\nsurvival kit during the crisis.<\/p>\n
But it has more scope to schedule the release of its
\ninternational artists and select them.<\/p>\n
\"We have our worldwide priority artists according to our Asia
\nRelease Schedule. There are names like Celine Dion, Michael
\nBolton or new releases of groups like Pearl Jam and the new mini
\nalbum of Britain's Oasis,\" Kunto Handoyo, local label manager of
\nSMI, said.<\/p>\n
SMI is still sticking to basic marketing rules, he said: \"Such
\nas releasing the second video clip for our Indonesian artists
\nwhen they reach a certain sales level, like Rif Band recently.\"<\/p>\n
The company's best selling local artist last year was Anggun
\nC. Sasmi, whose album sold 150,000 copies. In comparison, the
\nalbum of an R&B queen like Mariah Carey can reach 60,000 copies.<\/p>\n
SMI released its two local bands in December -- Arwana and
\nBima -- but the sales have hit hard times.<\/p>\n
Arnel Affandi, general manager of the Association of
\nIndonesian Recording Industry (ASIRI), said the industry had
\nsuffered an overall decline in sales of 52 percent. (This
\nincludes Indonesian and international artist.)<\/p>\n
\"And it's still on a downhill slide. We predict it will reach
\nsomething like 60 percent.<\/p>\n
\"But if we look at it closer, the sales of CDs featuring
\ninternational artists are enjoy an upward swing. Maybe it is
\nbecause a lot of foreigners are buying them up because the price
\nof CDs in Indonesia is still much cheaper compared to those in
\nthe United States ($35 to $45).\"<\/p>\n
He identified two key problems in the Indonesian
\nindustry.<\/p>\n
First, the increasing price of raw materials and second, the
\ncash flow.<\/p>\n
Producers provide cash for the production -- from the buying
\nof empty tapes to the payment of the artists -- and the
\npromotion. But only 10 percent of retailers pay for their
\npurchase in cash.<\/p>\n
When asked about the impact on artists, he said it would hit
\nnewcomers the hardest but it did not mean the door was closed for
\nthem.<\/p>\n
\"Who knows if Iwan Fals composes a song which reflects the
\npeople's frustration, and it turns out to be another great hit?\"<\/p>\n
Pop music still dominates the market with a 45 percent stake,
\nwith dangdut still drawing 35 percent. But trends can certainly
\ninfluence sales.<\/p>\n
\"The current situation is very bad for us. But we just have to
\nwait it out,\" he said.<\/p>",
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