Wednesday, July 05, 2006

The Backroom Deal

Yesterday I met with journalist Onnik Krikorian to discuss our upcoming collaboration with a YerazArt project. After our meeting, we decided to head over to the "Armenian Music Center" on Amiryan St. Our visit there was spontaneous after a discussion of the music industry in Armenia. A somewhat hard to find store on a prime city street, once we headed downstairs and entered into the lobby of the store the effect was somewhat underwhelming. Not too many CD's for sale, and a seperate area for internet usage open to the public.

While I am here on business working for YerazArt, my interest in the Armenian music market in Armenia still remains high. Specifically, there are issues of illegal copying of CD's, price points for CD's being sold here, and production values. I was tipped off to the Armenian Music Center based on my conversation with the lead singer of LAV ELI, Mher Manoukyan, who pointed on that this store/record label/distributor was actually doing CD printing the right way. Indeed, I had popped into the shop a few days earlier to purchase their own production of the new Alla Levonyan CD, "Maral" for 3000 Drams (about $8). The packaging was simple and elegant. No booket, only a one panel digipak design. The CD looked legit.

It was my intention to offer our Pomegranate products to this company for an elegant and cost effective local printing so Armenians in Hayastan can enjoy our music, instead of buying illegal copies at the Vernisage for $4 or originals for $20 at high end stores. When I asked to see the owner of Armenian Music Center, I was greeted by a very nice woman who informed me that the owner was ready to see me. I asked Onnik to join me to see how this whole negotiation unfolds.

As I walked into the backroom of the store, it was almost a scene from Central Casting. A fairly robust man with a beard smoking a cigarette was behind the desk with two guests seated in front of him. Ironically, one of the guests sitting down were a potential artist I am thinking of signing. However, shifting gears, the owner and I engaged in a 15 minute negotiation process in both Armenian and English that didn't eventually lead anywhere. Yet, for me, the fascinating thing was that there is a small, but growing local respect for homegrown artists and their CD's. In the case of Alla Levonyan, she enters into a contract with Armenian Music Center and gets a cut of every album sold. The retail price is between $8- $10 depending on which store you go to. Armenian Music Center produces the CD's locally and as far as I've seen, no copies are made of their product here in Armenia. Thus, in a way, the artists are protected.

The introduction of mid priced items for the local market is a great sign for Armenia. Unfortunately, artists that do not reside in Armenia will be pirated. However, Armenian Music Center has a distinct brand with their hologram logo, Digipak design, and overall consistent look sold at a nice price that keep the pirates away.

While we were not able to agree on a deal on our initial visit, I will return and check his pulse again and see if a local printing can yet be done through his company at the right price. If not, of course, there are other options.

4 Comments:

Anonymous armen said...

can you tell me when the new cd of lilit P.will be out?
i hope i will also be able to read interview with her.i just remmeber one show with her in rubikon and that marvelous clip.i hope we will see her again on tv.

8:43 PM  
Blogger Raffi said...

Hello Armen,

Unfortunately, we don't have a release date as of yet as the studio sessions have taken much longer than expected. Also, contract negotiations have not been finalized. We hope to wrap everything up soon and have a product by November 2006. However, there is a chance Lilit will choose to release this on her own without Pomegranate. I will keep you posted. It's a tricky business here in Armenia. Ultimately, I hope artists can realize there is a market beyond Armenia and LA.

12:46 AM  
Blogger Sonya Varoujian said...

Raffi,

I see you've been to AMC which is the guy I was talking to you about at the Red Bar that night. Would love to catch up and talk about this in more detail to see if you think it is worth my time negotiating with him. Just wouldn't mind picking your brain before you leave.
Sonya

3:51 PM  
Anonymous harmick said...

Those cds are not printed in ARmenia- its all sent to moscow and done there, then brought back, at least I am sure thats how the CD pressing is done, I am not entirely sure about the packaging but im pretty sure thats the same way to be honest

Still good though
you wont find pirates of those anywhere ( I looked!)

10:12 PM  

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