Wal-Mart: New Music Powerhouse Starts Dealing Directly With Artists

One of the biggest music events of the summer has already taken place in Fayetteville, Ark. From Tuesday through Thursday last week, the Bud Walton Arena at the University of Arkansas presented shows by Journey, the country singer Keith Urban, the "American Idol" personality Carrie Underwood and the alternative rock group All-American Rejects.

The occasion that brought this all-star line-up together? Not a festival or cause but Wal-Mart Stores' annual shareholders meeting. Wal-Mart was the largest music retailer in the country last year, so musicians (and their labels) are eager to maintain good relationships, appearing in the special concerts for the chain, which are also open to the public.

During her performance, Ms. Underwood volunteered that a Wal-Mart had recently opened in her hometown, Checotah, Okla., and Keith Urban changed his lyrics from "Goodbye, city, I'm country-bound" to "I'm Wal-Mart-bound." And the retailer is using its leverage to aggressively pursue new deals.

On Tuesday Wal-Mart started selling on an exclusive basis a three-disc collection by the popular 1980s band Journey called "Revelation." The difference, however, is that there is no middleman: the album was bought directly from the band without the help of a record label.

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