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Glossary in this industry

Direct and special markets: Targeted consumer environments in which product purchases are made without physically "walking" in to obtain merchandise. Examples include purchases made through mail order, or by responding to television advertising. Some special market programs feature certain conditions or terms under which product is available. Examples include record clubs.

Distributor: A business operation that provides music product from record manufacturers to one stops, rackjobbers, retail and other outlets for ultimate sale to consumers. Distributors often provide marketing and promotion support to record labels and retailers.

Dollar value: The monetary worth of a stated quantity of shipped product multiplied by the manufacturer’s suggested retail price of a single unit. The value of shipments is given in U.S. dollars.

Domestic market: A term used here to refer to the U.S. consumer market.

Mass merchandiser: A very large retail chain that sells a variety of goods, including recorded music. Such stores include Wal-Mart and K-Mart.

One stop: A wholesale source for music product, primarily used by independent record stores which purchase product from there for retail sale.

Product configuration: Any variety of "delivery system" on which prerecorded music is stored. Various music storage/delivery mediums include the full-length CD album, CD single, cassette album or single, vinyl album or single, mini-disc or VHS music video.

Rackjobber: A business concern that obtains product from distributors for large discount department store chains, such as Target and Wal-Mart.

Record club: A mail order operation in which consumers become "members." In some cases, members commit to purchasing a specified number of recordings.

Returns: The quantity of unsold product from a retailer or other outlet that is returned to the distributor.

Units shipped: The quantity of product delivered by a recording manufacturer to retailers, record clubs, and direct and special markets, minus any returns for credit on unsold product.

Source: http://www.riaa.org/


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Last Update: April 2, 2000