Warner Music has spectacularly fallen out with Tesco over proposed new trading terms, resulting in the retailer not stocking any of the major’s new releases.

 

A repackaged version of Michael Bublé’s multi-platinum Crazy Love, which is released today (Monday), has become the first key Warner release to be hit by the dispute and will not be available in any of the supermarket’s 800-plus UK stores selling music.

 

Unless a settlement is quickly reached, other forthcoming Warner albums by acts including James Blunt, Cee-Lo Green, Katherine Jenkins and Rumer will also be affected by the row, which has been sparked by what the music company says are “unacceptable” new trading conditions offered by Tesco.

 

Warner Music UK CEO Christian Tattersfield says, “They came to us wanting to renegotiate the terms and conditions and these were not economically viable for Warner Music.”

 

However, the dispute has taken a curious twist because Tesco entertainment director Rob Salter claims the first time he became aware negotiations had broken down was when Music Week told him of Warner’s position. According to Salter, the two sides “weren’t that far apart”.

 

“To be honest I’m quite surprised,” says Salter who has already negotiated Q4 terms with the other three majors. “We’ve been talking to Warner about Q4 and about terms and conditions and certainly weren’t aware they had effectively ceased trading with us. They certainly hadn’t told us that.”

 

Despite this apparent breakdown in negotiations, already-released Warner albums, including Paolo Nutini’s Sunny Side Up and Plan B’s The Defamation Of Strickland Banks, which are respectively the third and sixth biggest-selling albums of the year to date, will continue to be stocked by Tesco as these come under previously-agreed terms. But the dispute could now hit what Warner believes is a very strong Q4 line-up.

 

“We’re very confident with our release schedule, but we are not prepared to be bullied and we believe, unlike some people, there’s an incredibly strong future for music,” says Tattersfield.

 

The Warner executive will clearly be keen to get the dispute resolved as soon as possible given his rivals will now have the distinct advantage of having their new albums stocked by Tesco while his will be missing, but he is holding firm on not agreeing to the new conditions.

 

“I’ve no idea how long it’s going to take, but the bottom line is we’re not prepared to do deals that don’t make economic sense,” he says.

 

The dispute comes four years after another fallout between Tesco and the major over trading conditions, which similarly resulted in new Warner albums being barred from the supermarket’s shelves, including titles by My Chemical Romance and P Diddy.

 

Since then the retail landscape for music on the high street has changed dramatically with key players such as Woolworths and Zavvi having gone out of business, leaving Tesco as one of the few physical retailers left selling music.

 

Given its more powerful position when dealing with music companies, the supermarket under Salter has adopted what could be described as a more aggressive stance, repeatedly warning labels the space Tesco provides for music in its stores could decline.

 

“In the end we’re not forcing anybody to do anything,” adds Salter. “We actually think we should be on the same side here and we need to find a solution for us to take music in the future. It cannot be lost on anybody the space devoted to music by retail has shrunk alarmingly. We think there’s a solution, but that has to be done collaboratively with our clients and ourselves. If Warner think the best thing for them is their releases shouldn’t be stocked in Tesco then that’s their choice.”

 

The tougher stance by Tesco comes against the backdrop of the supermarket’s attempt to sign deals with artists to sell their albums exclusively, a trend more common with retailers in the US. Although deals have been struck with Faithless, Simply Red and Nadine Coyle, whose first album outside Girls Aloud is released on her own Black Pen label through Tesco on November 8, these are all acts who self-release and Salter has publicly acknowledged he has “struggled” to secure exclusives with artists signed to labels.

 

Now that explains why Michael Buble's re-packaged album is missing from this week's top 40 album chart. :lol:

 

Sales wise must be a heavy loss when Warners have a big share in the music industry, which could effect major albums released in the final quarter of the year, if the dispute is not settled.

Now that explains why Michael Buble's re-packaged album is missing from this week's top 40 album chart. :lol:

 

:unsure: it's listed as being in the top ten looking at the chart predictions thread! I'm sure Buble can sell albums in places other than just Tesco :heehee:

:unsure: it's listed as being in the top ten looking at the chart predictions thread! I'm sure Buble can sell albums in places other than just Tesco :heehee:

 

 

:doh: me, I was looking for a new entry, obviously it be combined. Flop. Chart. Leader. -_-

that article fails to tell us what these trading terms are that warner had a problem with, fail.

screw tescos they denied me and my freind a 15yr old dvd LOL cause i didnt have id, then we came back with my freinds id and said sorry we still cant serve you it because we know its for your freind xD i was 16 too loll... goo ASDA price

Yep Asda is the place to get your CD's.

Hope MyChem can still top the album chart when Danger Days comes out in late Nov even without Tescos help.

Hope MyChem can still top the album chart when Danger Days comes out in late Nov even without Tescos help.

In the same week as Take That? No chance.

Oh damn! I knew I should've looked up the release schedules. I do think MyChem will have a big seller though, Black Parade has picked up many more fans than they had before who shd buy Danger Days too.

The dispute has now been settled.

 

From Music Week

 

Warner and Tesco have settled their dispute over trading terms, with Warner albums returning to the supermarket’s shelves.

 

Music Week revealed last week that Warner had pulled its CDs from Tesco, after the retailer tried to renegotiate trading terms that Warner UK CEO Christian Tattersfield said “were not economically viable for Warner Music”.

 

However, the dispute has now been resolved, with Warner agreeing trading terms it calls “satisfactory”.

 

A Warner Music spokesman says, “Following further discussions this week, we’re pleased to say we have agreed satisfactory trading terms with Tesco. As a result, their stores will be stocking our fantastic line-up of forthcoming releases.”

 

Tesco is making arrangements to have new Warner stock in store as soon as possible, including a repackaged version of Michael Buble’s Crazy Love album, which was released on Monday.

lucky they resolved this as Tesco is the only place where cds can be purchased in my town at relevant prices, unless people use a sole trader business called rythmic which cells for terrible prices, whereas albums which would be £8 or £9 in tesco, are £12 - £14 at Rthymic, its a scam.

 

im sure many other places have similar problems.

lucky they resolved this as Tesco is the only place where cds can be purchased in my town at relevant prices, unless people use a sole trader business called rythmic which cells for terrible prices, whereas albums which would be £8 or £9 in tesco, are £12 - £14 at Rthymic, its a scam.

 

im sure many other places have similar problems.

 

You do realise you can download albums, now? :P

 

I usually only buy CD albums for my favourite artists nowadays - mostly I just download.

You do realise you can download albums, now? :P

 

I usually only buy CD albums for my favourite artists nowadays - mostly I just download.

 

yes am not stupid! and life in a freaking nutshell? honestly was there any need for a smart remark?

 

i personally prefer the proper copy of the cd!

some places only have tescos to buy cds warner is stupid!

lucky they resolved this as Tesco is the only place where cds can be purchased in my town at relevant prices, unless people use a sole trader business called rythmic which cells for terrible prices, whereas albums which would be £8 or £9 in tesco, are £12 - £14 at Rthymic, its a scam.

 

In fairness to the handful of independent record shops still open for business they probably have to sell for that price to make a profit! They are probably beinging charged higher prices to help balance the books at Warners after Tesco screw them!

In fairness to the handful of independent record shops still open for business they probably have to sell for that price to make a profit! They are probably beinging charged higher prices to help balance the books at Warners after Tesco screw them!

Sadly you're right. The do the same with all their suppliers. Hence the lack of independent record shops, book shops, greengrocers, butchers etc.

some places only have tescos to buy cds warner is stupid!

 

Warner's are from stupid. Tesco are getting to big for their boots, just because they make £2bn profit every few months, they think they can dictate derisory deals with record labels thinking they would be to scared to reject Tesco. Applaud Warners! Tesco are too often trying to break embargos to, because they think publishers and all are too scared to pull their stock from them.

 

And let's not forget you're paying more for your groceries so the supermarkets can fund their loss leading entertainment titles.

Tesco are rubbish for CDs anyway, for the cheapest CDs I always go to Morrisons, there's a smaller selection, but the ones I want are always in and always cheaper :)

lucky they resolved this as Tesco is the only place where cds can be purchased in my town at relevant prices, unless people use a sole trader business called rythmic which cells for terrible prices, whereas albums which would be £8 or £9 in tesco, are £12 - £14 at Rthymic, its a scam.

 

im sure many other places have similar problems.

Er, greenock? I always quite liked that shop, but with tesco 2 mins away and the price diff that's understandable. Its quite lucky as lots of towns have nowhere which sells music. My home town has no hmv and woolies closed and whsmith just stopped selling cds so now its a walk down to asda on the fringe of the town centre. And whsmith prices were every bit as bad as rhythmic. It last less defence as its still a big chain but has limited purchase power compared to tesco.

 

Glad the dispute resolved but typical guerulla tactics from tesco holding everyone to ransom