(The Mail on Sunday is demanding that Planet Earth's giveaway sales
be counted on the UK CHarts.  If not, they will sue.  THey are
giving away over 2 million discs this Sunday.-j7)

This was posted on HQ by Blumer_75 1st
http://www.housequake.com/showthread.php?s=&threadid=89235

http://business.guardian.co.uk/story/0,,2125795,00.html


Mail on Sunday: 'include Prince CD in chart'


Stephen Brook, press correspondent
Friday July 13, 2007
MediaGuardian.co.uk


Prince: the Mail on Sunday is set to distribute 2.9m copies with the
star's Planet Earth CD included for free. Photograph: Kirsty
Wigglesworth/AP

The Mail on Sunday has threatened legal action over its
unprecedented giveaway of Prince's new album Planet Earth to try and
force it into the official music charts.
MediaGuardian.co.uk has seen a copy of a letter the Mail on Sunday
managing director, Stephen Miron, sent this week to the Official UK
Charts Company, demanding it include Planet Earth in its albums
chart.

On Sunday the MoS will distribute 2.9m copies with the Planet Earth
CD included for free, after paying about £250,000 to Prince for the
licence.


Article continues

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An extra 200,000 copies of the paper will be printed without the CD
for foreign and bulk sales.
The Mail on Sunday sells 2.3m copies each weekend, according to the
latest ABC figures.

Producing and marketing the Prince CD will add several hundred
thousand pounds to the MoS's costs, pushing the total bill for the
Associated Newspapers title's promotional gambit towards £1m.

"We are spending a fortune on this," said Mr Miron.

In the letter to the Official UK Charts Company, Mr Miron
wrote: "Given our belief that this album should still be included on
the official UK album charts and having responded to your issues, I
would urge you to reconsider your previous position as a matter of
urgency, before we engage our lawyers for legal advice to force a
challenge to this restraint on our trade."

The Official UK Charts Company has refused to enter the album Planet
Earth on its chart, saying it could not prove that newspaper sales
were "genuine consumer purchases" and that it could not audit sales
accurately.

"It's denying Prince his rights," Mr Miron told
MediaGuardian.co.uk. "It will be number one in the UK chart and we
think that's something that he should be able to do.

"The fact that they are referring back to rules put in place ages
ago doesn't seem to fit with the way the music industry is now. I
think they are mad."

Mr Miron said that legal action was not inevitable. "We are just
considering our position with that at the moment really," he added.

Prince will also receive royalties from each copy of the Mail on
Sunday sold in addition to the licence fee.

"Prince would not be able to get as much money by selling this
record in shops than he will with this deal," Mr Miron said.

He added that despite the enormous expense of the promotion, whether
it was profitable for the paper depended on how many copies the Mail
on Sunday sold his weekend. "It may be the best value promotion that
we have ever done," he said.

Already news of the alliance between the paper and the recording
star has featured on the BBC Six O'Clock News and in the New York
Times. Advertisers are crowding into the paper as a result,
according to Mr Miron.

For the first time, music chain HMV will sell the newspaper after
initially complaining about the promotion.

An edition of the MoS containing a giveaway of Mike Oldfield's
Tubular Bells album earlier this year sold 2.6m copies, while the
edition that carried news of the death of Diana, Princess of Wales
in 1997 sold 2.8m copies.

When Prince's UK record company Sony BMG found out about the MoS's
promotion, it suspended the release of the album.

The deal was negotiated between the Mail on Sunday, Prince's manager
Paul Gongaware, and Rob Hallet, an executive with entertainment
company AEG, the major redevelopers of the Millennium Dome, now
known as the O2, where the artist will be performing later this year.

Agent Simon Stanford of Upfront Promotions set up the deal, which
will see the CD and the CD cover incorporate the Mail on Sunday logo.

The Entertainment Retailers Association, whose members account for
more than 90% of retail sales of CDs in the UK and which half owns
the Official UK Charts Company, has protested to the Audit Bureau of
Circulations in an attempt to get it to discount the sales boost
from the paper's circulation results.

"We believe that this promotion and others like it potentially
distort the accuracy of ABC's audit in a way which could mislead
advertisers and other users of your data," wrote the ERA secretary
general, Kim Bayley.

The MoS was offering an incentive to purchase worth up to seven
times the £1.40 cover price of the newspaper, the ERA said.

"These people are desperate people," Mr Miron responded.

The ABC did not release a comment responding to the ERA, but will
audit the paper to the agreed industry standards.

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