I never copy and paste news from another site (we have enough bloggers regurgitating material out there) but this article really resonated with me. I’ve been a strong advocate of the digital promo for quite sometime now, so hearing actual cost savings coming from the label perspective is refreshing. The original source is from a paid subscription I have to Music Week. Please don’t sue me MW…I’ve given you proper credit.

Viewpoint: Lo Recordings’ Gavin O’Shea on why labels should cut down on CD promos

A year ago we presented an argument for the end of CD promos at the AIM AGM. This was taken up as one of AIM’s Big Ideas for the next decade. All labels produce an extraordinary level of promotional CDs each year for the carpet bombing of press, radio and retailers. Lo Recordings, a relatively small outfit, manufactured 27,000 that year. Ninja Tune notched up approximately 80,000.

We argued that, as promotional CDs have always been seen as “what we do” for our artists, we have been slow to move toward digital means. The initial download options were perceived as too complex and easy to lose track of by the recipient.

So we stuck to the process; shipping them All Around The World and then posting them a bit further in an attractive jiffy bag, guaranteeing piracy before release, devaluing the final product and costing a small fortune. We argued that the advent of effective streaming could allow us to move away from this and quickly – a result for us and the planet.

Within the last year Lo recordings have reduced our CD promos to a level that is saving us £500 per album project. For a small label this is a sizable reduction, allowing us to develop more online promotion and radio promotion in one or two territories. AIM has researched the industry’s opinions on the switch to digital and has found that there is a surprising amount of openness to the idea.

We may not be that close to the death of the CD promo but we are certainly able to address the issue in a more targeted way.The increase in precision of online services at all levels has given us a range of options for delivery that outstrip the CD mailer.

Increasingly we promote our artists directly to focused fan bases. This allows us to concentrate more on creative ways to promote our lovely music rather than stuffing envelopes. There are journalists who will demand a CD for review and who can blame them? If they want to review an album that is not an issue. What we are trying to achieve is that they all have a listen online beforehand.

As well as the cost this is also an environmental issue, AIM has commissioned Julie’s Bicycle to define the extent of the emissions. We await the results but they are sure to add weight to the move away from the promo CD.