By Ed Christman

When talk at this year's NARM convention focused on new environmental packaging, as it did in a closed-door meeting attended by leading accounts and major distributors and in the bars afterward, the discussion wasn't just geared toward stimulating CD sales -- it was also a centerpiece of a developing industry-wide "green" movement.

Artists clearly appear to be backing green innovations. For instance, Perry Farrell's new Columbia album with his band Satellite Party, "Ultra Payloaded," was issued in a recycled-paper Digipak; the carbon dioxide used to make and ship the disc is being offset with contributions to renewable energy projects. But labels and retailers are onboard as well. At NARM, held April 30-May 2 in Chicago, budding initiatives by nearly every major label were either introduced or widely debated.

Sony Sales, the shared-services department that represents Columbia and Epic, was touting three different packages for every new release, a retail source says. The eco-friendly "paperback" version would feature either a one-page card or, at most, four pages of liner notes, and retail for between $9.99 and $11.99, the source says. In addition, a standard package would list at $18.98 and a deluxe version for $19.98-$21.98.

The latter package, a digital and physical hybrid, would allow users to access ringtones, wallpapers and other downloads, all of which would be priced accordingly. But retail accounts could only order the paperback version in conjunction with one of the other packages. Initial releases in the triple format are expected in July.

Virgin Entertainment Group North America VP of marketing Dee McLaughlin revealed at NARM that the chain is converting all its shopping bags and point-of-purchase material to recycled stock. Company owner Richard Branson has been at the forefront of the green movement.

Warner Music Group, which has launched a companywide initiative to reduce or offset greenhouse gas emissions, reported at NARM that it has also been using ecologically enhanced paper for the last month.

Universal Music Group has reissued its Millennium greatest-hits series in eco-friendly packages that replace the CD booklet with a single card, featuring only the cover of the album on the front. On the back, a small notice directs the buyer to a Web site to obtain complete liner notes.

Montreal-based catalog reissue specialist Madacy Entertainment, meanwhile, has experienced a fourfold increase in sales since it began issuing product in recyclable "tin can" containers last fall, according to Madacy CEO Amos Alter. Tins used for Madacy's 30-title Collector's Series hold as many as three discs, each with generic packaging. Such releases are available at varying price points. The budget version, for instance, contains a single disc retailing for $5.99 and features 12 tracks plus a bonus ringtone valued at $2.99, Alter says.

While retailers as a whole support going green, some larger accounts anticipate significant retrofitting costs when they transition into carrying the newer configurations. Other retailers are concerned that one-card packaging could cut into sales. Without liner notes, says Brian Faber, director of operations for the eight-unit, Phoenix-based Zia chain, such a product could be mistaken for a burned CD. "Packaging absolutely matters," Faber says. "It's part of the perceived value of the CD."

"My fear," one account familiar with NARM's closed-door meeting says, "is that the logistics people will win out over the visionary green guys." Still, retailers largely welcome the changes and acknowledge that they'll have to adapt.

"The green issue is like the longbox all over again," Newbury Comics CEO Mike Dreese says. "There are two stances the industry can take-we can do nothing and wait 18 months and react to a coming negative attack from environmentalists, or we can be truly proactive. The question is: Are we going to man the dykes or build a new bridge to the future?"