BMG, the US-based music company owned by German media giant Bertelsmann, plans to roll out a $10m campaign this autumn for a new compilation record on Elvis Presley, according to people involved with the project.
With the worldwide campaign for the CD, called "Elvis 2nd to None", which is set to be released in early October, BMG plans to follow last year's unexpected success with an album of number one hits from the King of Rock ´n Roll.
While it is unlikely that last year's Elvis sales success can be matched, BMG has high hopes for the new record, shipping more than 1m units to US retailers alone.
With the majority of the campaign budget going into television and radio advertising, the company plans to sell about 4m-4.5m by the end of the year, half as much as Elvis 1.
Given that the margins for a catalogue product such as this tend to be higher than a new album release from a living superstar, this sales target will still boost BMG's stretched balance sheet.
"The margins are always higher with catalogue products, as you don't have to pay the typical superstar royalty", said Joe diMuro, executive vice-president at BMG's strategic marketing group.