Klaus Heymann, CEO of HNH (parent company of Naxos and other firms) has
been thinking about the current dialogue concerning the present and future
of the classical-music *business* (as behooves a businessman, who also
happens to be a major music *fan*), and he agreed to the forwarding of
this message.
From: Klaus Heymann
Much has been written about the above over the last few days and I
thought I had better contribute a few facts to the discussion.
Classical music is not going down ... it is going back to where it was
in the 1980s, i.e. before the CD boom. The core classical business,
i.e. the business of recording interesting repertoire and interesting
new artists is back to the pre-CD levels. However, unlike in the
1980s, this business is now dominated by Naxos, a few heavily promoted
hit productions and the back-catalog releases of the majors and some of
the independents also contributing the occasional chart hit.
Take a look at the top 25 UK Specialist Classical releases:
Naxos 9
Decca 5 (Promoted 4/Back Catalogue 1)
EMI 3 (Promoted 1/Back Catalogue 2)
ECM 2
Philips 2 (Promoted)
Sony 1 (Promoted)
Conifer/BMG 1
Nonesuch 1
Classic FM 1
In this particular week, Naxos had 14 out of the top 50, i.e. 28%; but
in its best week so far this year, Naxos had 25, i.e. 50%, out of the
top 50.
Naxos was also the top label in the UK, in terms of unit sales, for the
second quarter of this year, at almost 17%, i.e. despite the massive
sales of the heavily promoted compilation/crossover albums of the
majors (Sony was second with 13.3% and Decca third with 12%).
Obviously, Sony and Decca sell lots of CDs of their heavily promoted
chart toppers but Naxos sells even more with its many new releases and
its depth and breadth of catalogue material.
The pop classics of the majors sell substantial quantities on a
per-title basis but there are not that many titles to sell. This is
additional business, as far as classical music is concerned.
Most independents make money although they don't make a lot. Whether or
not an independent label makes money depends very much on what they
release in any given year. The business is now new-release-driven as
back catalogue has become difficult to sell, a phenomenon we all have
to cope with.
My company, HNH, distributes practically all the independent labels
somewhere in the world and they are not going down, down, down ... but
most are struggling to make ends meet.
A lot has been said about Naxos in your group but, by and large, most
people have got it wrong. Naxos is now what the majors used to be ...
the main repertoire provider in the industry. No other label covers so
much repertoire, from Early Music to the 20th Century avantgarde. Naxos
releases more chamber music, more organ and guitar repertoire than all
the other independents combined. Only Naxos tackles complete work
cycles by major contemporary composers such as Lutoslawski and, in the
works, Penderecki.
We can afford it because our standard repertoire keeps selling briskly,
not only to beginners (as some of you seem to think) but also to
serious collectors. Contrary to some of your opinions, our Beethoven
symphony cycle can stand comparison with the best ... just listen! Our
Jando Haydn Piano Sonatas are among the best, full-price competition
notwithstanding. Compare the Fricsay Verdi Requiem with the recent
Naxos release and you will agree that the group member who thinks the
Fricsay is a lot better got it wrong. Because, over the past ten to
twenty years there has been an incredible rise in the level of
performance of orchestras and soloists around the world ... you may
not agree but many of the Naxos orchestras today are technically better
than the major orchestras of the early 50s. What our excursion into
historical recordings has taught me is that the golden age of recording
is today ... while there were many great individual artists in the past
there are far more excellent artists around today than there were
twenty or fifty years ago ... just listen with an open mind and without
nostalgia.
We actually recoup our investments in most new recordings within 12 to
18 months from release, with the exception of opera and expensive 20th
Century repertoire. Our Four Seasons and other war horses pay for these
luxuries, without which Naxos would not be a complete classical label.
To add some fact to fiction, below you will find the top 25 in the
United States and the top 25 in the UK Specialist classical and
compilation/crossover charts ... in the UK they split the two
categories, i.e. the core classical releases and the pop classics.
US CHART (Week ending July 11th)
1. Star Wars/Phantom Menace Sony
2. Voice of an Angel/Charlotte Church Sony
3. Andrew Lloyd Webber Collection/Brightman London
4. Eden/Sarah Brightman Angel
5. Aria: The Opera Album/Bocelli Philips
6. Splash of the Pops/Boston Pops RCA
7. Time to Say Goodbye/Brightman/Cura/Bocelli Angel
8. Viaggio Italiano/Bocelli Philips
9. Classical Mix/Classical Mix PC
10. Most Relaxing Classical Album Virgin
11. Stepmom/Score Sony
12. Red Violin/Soundtrack Sony
13. Back to Titanic/Soundtrack Sony
14. Classical Greatness in the Making NARM
15. Build Your Baby's Brain 2 Sony
16. Listen, Learn and Grow Naxos
17. Mozart Classics DSSP
18. Beethoven Classics DSSP
19. Simply Baroque/Yo-Yo Ma Sony
20. Midsummer Night's Dream/Soundtrack London
21. Pachelbel/Ocean Sounds/Relaxation DSSP
22. 3 Tenors in Paris/3 Tenors ATLG
23. Bach/Ocean Sounds/Relaxation DSSP
24. Tchaikovsky Classics DSSP
25. Build Your Baby's Brain Sony
UK SPECIALIST CHART (Week Ending July 10th)
1. Voice of an Angel/Charlotte Church Sony
2. Viaggio Italiano/Bocelli Philips
3. The Art of Vladimir Ashkenazy Decca
4. The Best of Mozart/Capella Istropolitana Naxos
5. 3 Tenors in Paris/3 Tenors Decca
6. The Civil Wars/Glass/Wilson/Am Comp Orch Nonesuch
7. Mnemosyne/Garbarek/Hilliard Ensemble ECM
8. Aria: The Opera Album/Bocelli Philips
9. Gluck: Alceste/Drottningholm/Oestmann Naxos
10. The Original Four Seasons/Vanessa-Mae EMI
11. Britten: Violin Cto/Cello Symphony Naxos
12. Unforgettable Classics/Menuhin/Grappelli EMI
13. The Sweet Sound of Emma Kirkby Decca
14. Heroes/Andreas Scholl Decca
15. A Soprano Inspired/Lesley Garrett Conifer/BMG
16. Officium/Garbarek/Hilliard Ensemble ECM
17. Cage: Sonatas and Interludes/Berman Naxos
18. Mozart: Eine Kleine/Capella Istropolitana Naxos
19. Bax: Symphony No. 2/Scottish National Naxos
20. Mozart: Requiem/Slovak Philharmonic Naxos
21. Elgar: Cello Concerto/Du Pre EMI
22. The Pure Voice of Emma Kirkby Decca
23. Faure: Requiem/Oxford Camerata Naxos
24. Mozart: Clarinet, Oboe, Bassoon C'tos Classic FM
25. Saint-Saens: Carnival of the Animals Naxos
UK CROSSOVER/COMPILATION CHART (Week ending July 10th)
1. Love Songs/Pavarotti Decca
2. Midsummer Classics/Soundtrack Global TV
3. Star Wars/Phantom Menace Sony
4. Titanic/Soundtrack Sony
5. Most Relaxing Classical Albums 1 and 2 Virgin/EMI
6. The Kennedy Experience/Kennedy Sony
7. 100 Relaxing Classics/Various Artists Pulse
8. Braveheart/Soundtrack Decca
9. The Beyondness of Things/ECO/Barry Decca
10. The Piano/Soundtrack Venture
11. Only Classical Album You'll Ever Need BMG/Conifer
12. Most Relaxing Classical Album Ever 2 Virgin/EMI
13. Best Choral Album in the World Ever Virgin/EMI
14. Adverts Hall of Fame Classic FM
15. Driving Classics Classic FM
16. BBC Proms 99 Teldec
17. 100 Popular Classics Castle Music
18. Back to Titanic/Soundtrack Sony
19. Desert Island Discs BBC Music
20. Most Relaxing Classical Album Ever Virgin/EMI
21. Unforgettable Classics/Advertisements EMI
22. Good Housekeeping Pts Piano Classics Conifer/BMG
23. Simply the Best Night at the Opera Erato
24. Songs of Sanctuary/Adiemus Venture
25. Lesley Garrett/Lesley Garrett BBC/BMG Conif
Have fun,
Klaus Heymann
Janos Gereben/SF
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