Final Report: Distribution of Free CDs to Public Library Systems
New York State Attorney General's Office
and New York State Library
Program for Free Music CD Distribution to Public Library Systems
March 2006
Settlement in 43-state antitrust case related to the pricing of music CDs
PROGRAM OVERVIEW
As the result of a settlement in an antitrust case related to the pricing of music CDs, New York's 23 public library systems received 220,439 free music CDs in the fall of 2004. The nationwide, 43-state settlement included a distribution of over $75 million (list value) in CDs to libraries, schools, and other non-profit organizations, as well as a direct cash distribution to individual consumers. Under New York State's plan, which was negotiated by the New York State Attorney General's Office, the public library systems received 60 percent of New York's share of the music CDs. Schools and other organizations received the remaining 40 percent.
The New York State Library and the New York State Attorney General's Office worked with the directors of the public library systems to ensure that New York's library users would benefit from the program. Some 965 or 90 percent of New York State's public libraries and neighborhood branches participated. This report describes the results of the Free Music CD Distribution Program and presents highlights of the disposition of the CDs as of September 2005.
The public library systems efficiently coordinated the distribution of thousands of the music CDs to local libraries across the state. Library system staff assisted their member libraries in adding the CDs to local collections and computer catalogs as appropriate. In March 2005, each library system filed a six-month interim report with the State Library that identified the individual libraries and branches receiving free CDs. Final reports were filed in September 2005. The interim reports and the final reports filed by the library systems are available on the State Library's web site ["See also" on this page]. The State Library has compiled this February 2006 final report from the interim and final reports submitted by the public library systems.
A memorandum of understanding between the State Education Department and the New York State Attorney General's Office outlines the terms of the CD distribution. That memorandum is also posted on the State Library's website. Under the terms of the agreement, libraries and systems could add the CDs to their music collections or sell the CDs and use funds derived from CD sales to build music-related collections and enhance music-related programming. Libraries could also use the CDs as giveaways to promote music-related programming and collections.
PROGRAM RESULTS
Overall, New York's public library systems reported that the Free Music CD Distribution Program benefited their member libraries and the public. All 23 public library systems participated in the distribution program, and as of September 2005, systems reported that they had distributed all of the CDs to local libraries or branches. Libraries added over 64 percent of the free music CDs to public library circulating collections. The remaining music CDs were either given away as incentives or sold or are awaiting final disposition.
Although the majority of public libraries were delighted with and very grateful for the free CDs, some libraries did express disappointment in the large number of outdated or duplicate titles they received. One library in the Southern Adirondack Library System commented, "This looked very much like record companies getting rid of stuff that had not sold, rather than sending us titles that we would want to add and that our community would expect to find here." On the other hand, many libraries were happy to receive some titles that they would not have chosen otherwise. The Southern Tier Library System cited the Latin music received through the program as an example of a genre that was popular among patrons but that rural library collections previously lacked.
Library systems reported that the music CDs were beneficial to public library music-related collections and programs in a variety of ways. Some libraries added the free music CDs to their existing circulating collections and others were able to establish a music CD collection that they otherwise could not afford. Some libraries gave the music CDs as incentives and prizes at library functions, and some sold the CDs. Proceeds from music sales enabled the libraries to purchase new music-related materials and to pay for live music performances at the library.
- Establishing, Strengthening, and Publicizing Library Music Collections
- Statewide, libraries and library systems added more than 60 percent of the free music CDs that they received to public library collections.
- The three public libraries in New York City (Brooklyn Public Library, The New York Public Library, and the Queens Borough Public Library) collectively added 97 percent (more than 76,000 CDs) to circulating music collections at more than 175 libraries and neighborhood branches.
- Buffalo and Erie County Public Library in particular benefited from the free music CDs. Due to the devastating fiscal crisis in Erie County, the library had no new funds to purchase library materials in 2005, and was dependent on 2004 carryover money and donations to maintain subscriptions and acquire new materials. The library held a large and well-publicized music sale and sold all CDs not added to library collections. The proceeds enabled the library to purchase more than 900 brand-new CDs for collections at a time when it was otherwise unable to purchase new CDs.
- Many smaller libraries in geographically isolated and rural areas established their first-ever circulating music collections because of the program. For example, 23 percent of libraries in the Southern Tier Library System did not have a music CD collection before the arrival of the free CDs.
- Library directors in the Mid-Hudson Library System offered many positive comments:
- "The addition of the CDs strengthened our collection of music offerings considerably. The variety of genres and styles helps ensure a diverse collection will be available to our patrons. We do two or three free concerts a year; the additional funds provided help us guarantee that we can continue these offerings." Greg Callahan, director, Hyde Park Free Library, Hyde Park, NY
- "We had no music at all. This was a great addition!" Lindsay Sullivan, director, D.R. Evarts Library, Athens, NY
- "These CDs established our music collection. We did not have one before." Margaret Kistinger, director, Pawling Free Library, Pawling, NY
- "We had no music CD collection before we received these. It has made us realize that we have more patrons than we thought that are interested in this type of collection. We hope to little by little purchase more and also hopefully get donations." Barbara Flach, director, Greenville Public Library, Greenville, NY
- Several libraries used the free music CDs to demonstrate to their library's governing board of trustees and to their local community supporters the high level of interest in a circulating music collection. As a result, they were able to secure local public funding to purchase even more music titles to meet local demand.
- Libraries with existing CD collections reported an overall increase in use of the materials as a result of the addition of new CDs from the program. During the last half of fiscal year 2005, The New York Public Library alone reported a 41-percent increase in use of music CDs over the same period during the previous year.
- Several libraries that gave away CDs as door prizes or summer reading program rewards successfully raised community awareness and increased the use of existing music collections and programs at the library.
- Several libraries noted that the increased visibility caused by publicizing the Free CD Distribution Program led patrons to donate even more music CDs to the library.
- The free music CDs increased the variety of music types in CD collections in communities large and small, rural, suburban, and urban, bringing more types of music to New Yorkers of all ages. The directors of libraries in various systems statewide reported as follows:
- "Amazingly enough, the CD that everyone comments about and loves is the Spooky Scary Sounds for Halloween CD from Martha Stewart Living. The CD has been used at kids' parties and school functions already. I can't imagine what it will be like this Halloween!"
- "The Latin music proved to be very popular at many different libraries."
- "School music teachers have been recommending titles from our collection for holiday music, Latin titles, etc."
- "Dismal is the only word to describe the collection previously. The new CDs encouraged library administration to have new shelves built and the combination of the new materials and the new display shelves area breathed new life into the music collection."
- "Seniors were thrilled with the addition of titles and performers from their younger days."
- "During the hot summer weather, many seniors found a comfy chair, some headphones and enjoyed the music and our air conditioning!"
- "Now that they are aware of our CD collection, patrons have donated many wonderful CDs to us."
- "Nassau County public libraries were generally very pleased with this program. Some of them established or significantly expanded branch music CD collections. Some created sizeable Latino music collections, enabling them to meet the needs of a growing Spanish speaking population. Some libraries saw an opportunity to expand under represented areas of their collections adding more country or jazz titles, new age or opera. The large and very varied group of holiday recordings provided something for everyone and an opportunity to move beyond the holiday classics."
- Promoting Music Programming at the Library
- Libraries used funds raised from CD sales to sponsor music programming in a variety of genres, ranging from Chinese folk music to classical music to a rock band.
- The New York State Library's very popular 2005 Statewide Summer Reading Program reached more than 1 million participants for the second summer in a row. The Free Music CD Distribution Program was an ideal complement to the 2005 music theme "Tune In @ Your Library," and hundreds of libraries took advantage of the free CDs to encourage reading, publicize music collections, and offer high-quality music programs for children, teens, and families.
- The King Memorial Library in Machias (Chautauqua-Cattaraugus Library System) held a program for children on making your own musical instrument. Two other libraries held programs featuring Nan Hoffman, a popular folksinger, as part of their Summer Reading Clubs. The Lakewood Memorial Library held a program with the wonderful title "Howl At The Moon With A Wild Thing."
- A number of libraries in the Mohawk Valley Library System held programs for children and their families as part of the Summer Reading Program, and used funds from the sale of CDs to pay for these programs. A few examples:
- Family performance by singer Tom Sieling at the Fort Hunter Free Library.
- Interactive family music program with Terri Roben at the Northville Public Library.
- Homespun Community Dance program at the Johnstown Public Library.
- Teen program featuring live music by a local teen band at the Sharon Springs Free Library.
- Libraries in the Upper Hudson Library System helped pay for performers such as the Poppytown Puppets and Music, musician Skip West, and ventriloquist Steve Charney at programs that provided music experiences to the children participating in the 2005 Summer Reading Program.
- Music programs were well attended, and benefited thousands of people in many systems-some of whom were visiting the library for the very first time!
- Libraries in the Mid-York Library System purchased more musical instruments for use in story times; conducted a "Fun with Music" six-week program series; and used the free CDs to enhance monthly musical story times.
- A library in the Southern Tier Library System purchased a banner and pennants to hang from village light poles to promote the library's ongoing music program, "Lawn Chair Concerts," at which residents enjoy live musical performances in a variety of music styles. The banners and pennants will be used for years to come!
- The Southern Tier Library System reported that in a rural area without public transportation and without access to live music performances, system staff used the donated CDs to encourage music-related programs in the system's five-county service area. More than 2,600 people attended music-related programs supported with funds from CD sales or at which CD collections were promoted. The purchase of music performances on DVDs and their addition to rotating collections have twice the benefit: Patrons can borrow them to watch in their own homes, and because all libraries have a public performance license, many of the DVDs can be used for library programs in the months and years ahead.
SUMMARY
The overwhelming majority of the 965 participating local public libraries and neighborhood branches reported that their local communities benefited from the Free Music CD Distribution Program. The following quote from Maurice Freedman, recently retired Director of the Westchester Library System and past-president of the American Library Association, aptly expresses the opinion of most of the libraries and the systems whose local communities benefited from their library's participation in this unique opportunity:
The Westchester Library System is pleased to report the magnificent success of the program.… Every library and the system itself all participated to varying degrees. We are delighted to have participated.... The enrichment of local library collections was extraordinarily important-especially for the smaller libraries and others that struggled to provide adequate CD collections.