Audio books to follow in video sell-through footsteps

Discount Store News, May 3, 1993 by Frank M. Viollis

Originally designed as an "institutional" tool for the blind and infirm, the audio book has come a long way since its debut in the mid-'70s and is now a core part of many retailers' book departments.

"Audio books are only a part of what the industry has to offer," said Jim Brannigan, president of the Audio Publishers Association. "There are foreign language tapes, motivational tapes, old time radio programs, and much more. In fact," he added, "the spoken word recording has been a Grammy category since 1958."

Audio books became especially popular with commuters in the mid-'80s. "Lifestyles became compacted. People wanted to fill the downtime of their commute [which the average American endures for approximately 45 minutes each day]. They found that they could drive to work, or to the store, or to the gym, or wherever, and get their reading done, at the same time. Audio books filled that empty space very neatly. They're much more than that, now," he added.

Today, audio book sales are at the billion dollar mark (a not so far cry from the book industry's $4 billion annual sales picture), with nearly 1,300 publishers actively engaged in setting the printed word to tape. Gross sales in 1992 were up 36% over the previous year. Industry revenues have likewise increased, up from $800 million in sales reported at the end of 1989.

Though the traditional audio reader profile has the enthusiast as being relatively upscale, some publishers have recently flirted with reducing the price point to attract a new, first time audience.

In this attempt to broaden the medium's acceptability, they have introduced what might be deemed audio paperbacks. They've realized that the mass merchants clientele (which they also realize may swing the industry's profile into high gear) is no more interested in spending the $16 or $18 per audio book than they were for spending $35 or $40 for video cassettes. They have, therefor, instituted what, is essentially, sell-through pricing. It may spur a new wave of interest, and generate unexpected returns. What then can be expected to become available on spoken word audios?

Interest in best-sellers, from the world of popular fiction and non-fiction, [lice blockbuster movie video counterparts), will continue to draw the lion's share of the audiophile's retail and rental dollars.

Children's books will begin to claim some of the limelight in the not too distant future. Los Angeles-based Wood Knapp & Co., has just announced the release of its Porch Swing Stories audio series. "There is a strong demand for quality children's audio," declared John Hunter, chief operating officer of Wood Knapp. "Porch Swing Stories is ideal for young children ages 2 and up."

The 10-piece product line will include such titles as "Cinderella," "The Ugly Duckling" and Jack and the Bean Stalk." They will each retail at $2.98.

"Some of the best works out there are read by professionals," said Terry Lipelt, director of merchandising & marketing for Rezound International. "They're major, well-known and highly skilled performers who can bring so much to a work that it really comes alive."

Americans are driven in their quest for diversion and entertainment, according to Lipelt. Audio books are the perfect medium for that.

Minneapolis-based Rezound is a division of Metacom. "We were created," said Lipelt, "to concentrate on the rental market. It's been working well in grocery stores already [as it has bee n in Blockbuster Video stores]." As to the mass merchants, he added, "Wal-Mart and Kmart are entertaining the idea of renting audio as well as video. It makes great sense."