Distribution and Sales

Companies use a variety of channels to optimize their distribution and sales.

Direct Mail

Companies like Columbia Records and BMG have designed record clubs to sell CDs in bulk to large amounts of people.

Major Label Branch Distributors

This channel cuts out the middleman and allows the record label to directly distribute to the public. They divide their work into promotion and distribution. Some may maintain their own branch offices or sell online.

Independent Retailers

Stores like Sam Goody are convenient for the consumer because they are located in more prime locations and sell CDs from different record labels.

Internet Distributors

This is a recent channel which may include a new branch of any of the distributors listed above. In addition, new independent online distributors have emerged to take advantage of this new resource.