Compilation Discs Gain Popularity

Wednesday, December 20th 2000, 12:00 am

By: News On 6

NEW YORK (AP) â€” Compilation albums were once the stuff of cheesy late-night television, where companies like K-Tel hawked oldies collections from artists way past their commercial peak.

The only option for fans wanting a variety of songs from different artists was movie soundtracks.

Now compilation discs have come of age. Mindful of the success of the ``Now That's What I Call Music!'' series in Europe, record companies are succeeding with the same thing in the United States by persuading hot artists like Britney Spears and Destiny's Child to lend them their hits.

The formula is simple: ``Just get a bunch of hit songs in one record,'' said 98 Degrees member Drew Lachey. His band has been featured on at least two compilations this year.

Some record companies, rich with hits of their own, have put out compilations from their own artists. Others find partners like MTV or Vibe magazine for theme albums, like ``MTV: The Return of Rock,'' or ``Vibe Hits.'' They have also banded together to create more diverse collections, such as ``Totally Hits 3,'' an effort from Arista, Warner Bros., Elektra and Atlantic Records.

So far, the formula is working. ``Now That's What I Call Music'' made its American debut in 1998 and sold 1.5 million copies of its first volume.

The fourth volume debuted at No. 1 on the Billboard albums chart in July â€” the first time a non-soundtrack compilation has started off in such rarefied territory. The disc has sold more than 2 million copies.

``Now 5'' has also sold more than 2 million copies since it came out last month, said Bruce Resnickoff, president of Universal Music Enterprises. Universal, Sony, Zomba and EMI Records contribute to the disc.

''`Now' is the most successful compilation of all-time,'' said Resnickoff.

The latest ``Now'' disc has 19 cuts from artists ranging from boy band 'N Sync to rapper Mystikal to rockers Bon Jovi. While 'N Sync's offering, ``It's Gonna Be Me,'' fell out of the Top 10 months ago, Mya's track, ``Case of the Ex,'' is currently No. 3 on Billboard's Top 100 singles chart.

There are no duds, and no untested songs. Every cut is at least a moderate hit.

``There's no gamble involved,'' said Antonio ``L.A.'' Reid, president of Arista Records. ``When you buy compilation records, you know exactly what you're getting. You're getting the top hits by the top stars, so it's a great value.''

It's also a great value for the record companies. Repackaging hits costs less than creating new product, which requires money for studio time, videos and promotion.

``I think that artists and the record companies have realized that it's become tougher and tougher to create artists in the current environment,'' said Tim Pearson, vice president of sales and marketing for the U.S. division of Sony Music.

With the music and media worlds splintered into so many different factions these days, it's harder for one artist to capture mass attention and keep it.

Fans with good computers and CD burners can now download music from the Internet and create their own compilations â€” so the format is becoming more popular.

Pearson said most consumers don't have the knowledge or the time to do that themselves. So the record companies have been doing it for them.

``It's what customers prefer, it's what teen-agers prefer,'' Reid said. ``It's supply and demand.''

Part of the reason the United States was so far behind Europe with successful compilations was because artists resisted lending their current hits, fearing that could hurt sales of their own albums.

``They fought this vehemently,'' said Resnickoff. ``When we did 'Now 1,' we had to go out and beg artists to participate.''

But once that record became a success, record companies noticed that many of the artists actually saw sales increase.

``It was clear that new pop superstar compilations can sell significant units, and if anything, positively impact the single artist records,'' said Pearson.

Fans who buy a compilation record because they like the Backstreet Boys or Sisqo may then turn around and buy an album by a lesser known artist, like Nine Days. Resnickoff points to the success of 13-year-old Aaron Carter, whose album took a dip before the release of ``Now 5'' but has moved up the charts since then.

By the time ``Now 5'' was in production, Resnickoff said, ``we had too many artists coming to us and had the unfortunate task of telling certain artists that we couldn't include their tracks on the record.''

Reid said compilations may even become more popular than soundtracks. On the latest Billboard top album chart, ``Now 5'' is perched at No. 3. The highest ranking soundtrack is No. 25, from ``Charlie's Angels.''

``For many years soundtrack records were a consumer's way of going out and buying an album that had all the top stars and many top hits,'' said Reid. ``But it was a gamble; you never knew if ... it was going to be a marginal album.''

Others, however, said the soundtrack business, with its multiple marketing tie-ins, would always be a top seller.

``Soundtracks will always have the advantage,'' said Resnickoff, ``because of the budgets that go behind marketing the movies.''