Will Jay-Z's Samsung Giveaway Count for the Charts?

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July 3 (Bloomberg) -- Samsung has purchased 1 million copies of Jay-Z’s coming album, "Magna Carta Holy Grail," set for release July 4 and will distribute it to Galaxy smartphone users tomorrow. Billboard Editorial Director Bill Werde speaks with Erik Schatzker on Bloomberg Television's "Market Makers. (Source: Bloomberg)

Fundamentally, we will count any of his actual sales and any other sales.

Through the app?

This is part of a $30 million branding deal, as you said.

Samsung says they're going to give away one million apps for no charge, so technically, there is nothing for sale.

Billboard has been about counting consumer transactions.

General popularity.

If you purchase an album, it means you wanted to spend some money.

If someone gives it to you -- there are some other logistics.

Samsung is based in korea giving out these apps globally.

We just learned about this a few days before it was going to market.

We consider the billboard the rules of play and we do not want to change that made game.

We need to send out a potential rule change, get some feedback.

And we may do that.

We will look at this closely and considerate -- consider it.

He changes how the albums get sold.

Is this a path forward for other artists?

It is a path forward.

Jay-z gets credit for this.

It is a way to pay for the album, which i think is brilliant.

Keep in mind, there is only a small handful of artists out there that a major corporation will spend $5 million or $30 million with to create an endorsement relationship and distribute an album like this.

For most artists, this is not a way forward.

But there are a lot of smaller companies and smaller artists who may see this as the future.

It is the future.

If you go back 10 years, album sales are literally a little less than half they were.

If you are a big album artist, big star, you're looking at a loss of $5 million, $690, $7 million in royalty rates based on the decline.

This is the way he is found to make up for that lost revenue.

Is this the beginning of the end of the record label?

A shift.

A shift into the new newsweek business.

Most labels are figuring out how to follow that shift.

Universal music group is getting a taste here.

Jay-z called it new rules and tweeted saying if one million records get sold and billboard does not reported, did it happen?

We were thrilled because jay- z tweets like six times a year.

One last question, he'll, if billboard does not count this, should the recording industry of association of america, they're going to decide whether this was signed in, gold, etc.

Why should customers count if you aren't? customer gold and platinum based on shipments.

We see this as a shipment.

If amazon or walmart or best buy decides to order 500,000 copies of an album one way, the raa will certify that.

Thank you for talking to us about jay-z's latest album dropping on sunday.

This text has been automatically generated. It may not be 100% accurate.

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