Album Sales Hit a New Low

[Don]

Why is this in the computer section? Because it has to do with the increasing digitization of music.

Larger retailers and CDs, vestiges of an older record business, have been hit the hardest. Through August 24th, CD sales are down 19.2 percent year-over-year while sales at mass merchants and chains have fallen 23 percent and 25.6 percent, respectively.

Record label sales executives are not surprised by the latest downturn. "Sales have been going in the wrong direction all year," says one label sales head. "I guess its overdue, when you look at [the growth of streaming]." This year, label executives finally conceded something there were reluctant to acknowledge last year: Streaming is cannibalizing digital sales.

[font size=1]http://www.billboard.com/articles/business/6236365/album-sales-hit-a-new-low-2014 Caution: images on this site may be from MTV awards, and may not be appropriate[/font]

Here's my opinion, and I have to admit, I'm only guessing: Walmart, Target, and other chain retailers need to be looking ahead to how they're going to replace CD sales (if they aren't already).

The person who comes up with the kiosk that you can pay 99 cents, attach your phone or MP3 player, and download the song (similar to a Redbox rental kiosk), might be tapping into the market....but as the article says, the person who can crack the revenue stream puzzle for streaming music is going to walk away with a ton of money. I'm surprised that I haven't seen "gift cards" for Pandora or Spotify, or other streaming music apps...or maybe I haven't been paying attention.

 

[InTheLight]

The person who comes up with the kiosk that you can pay 99 cents, attach your phone or MP3 player, and download the song (similar to a Redbox rental kiosk), might be tapping into the market....but as the article says, the person who can crack the revenue stream puzzle for streaming music is going to walk away with a ton of money. I'm surprised that I haven't seen "gift cards" for Pandora or Spotify, or other streaming music apps...or maybe I haven't been paying attention.

Surely you know about Wal-Mart music online, Google Play Music, Apple iTunes, etc. that allow buyers to download music to their computers and/or phones?

 

[Don]

Surely you know about Wal-Mart music online, Google Play Music, Apple iTunes, etc. that allow buyers to download music to their computers and/or phones?

But according to the music industry, they're measuring success by album sales....