Despite the growth of digital music sales in 2008, the music industry suffered as compact disc music sales continued a downward slide.
The Nielsen SoundScan year-end figures also revealed CDs are the most profitable and common medium for all recorded music, as it still snaps up 85 percent of overall album sales.
The recording industry is trying to find ways to make up lost revenue when music listeners elect to download individual tracks rather than purchase entire albums. More than 1 billion digital songs were sold throughout 2008 — a 27 percent increase from 2007 — while physical album sales fell 20 percent down to 362.6 million.
Purchasing an individual song for $0.99 per song is more appealing than spending between $10 and $15 for an album with two or three songs. During the most important time of the year for music sales — the final three months — record sales declined the most, according to sales numbers.
The Recording Industry Association of America (RIAA) originally tried to blame the decline of CD sales on peer-to-peer piracy, but analyst reports indicate piracy is not to blame.
Atlantic Records recently became the first major music publisher to announce digital music sales surpassed CD sales, with more than 50 percent of music sales now coming from music downloads. Warner Music Group also announced digital revenue also surpassed physical sales, with other record labels expected to announce similar trends.
9 Comments
The biggest moneymaker they had was the half empty, pressed CD that held one hot track and maybe 11 fillers. You HAD to buy the fillers to get the one track.
Once you could download the track you wanted, instead of gettting screwed by a watered down CD- the bottom fell out.Only one CD was needed and then once a digital copy was on the net, it was all over. The thousandth generation download was as good as the original rip.
Then, with legal music services, even 128kbps DRM loaded 99 cent track, was more attractive than the alternative.
Had the music industry continued to put mostly good tracks on CDs, they would still be selling. They mismanaged the talent, they stifled new talent and went with pop clones, then they had no real talent that could write or produce and they lost it.
They even drop the DRM now as piracy was never the problem. The CD is finished.
It could come back though, if the industry could find new talent and find great producers that could "fill" a CD with great music. Used to be an album had a thread of coherency through it, a message or a feel. Now, I don't know what the heck they even try to slap together. I have not bought a music CD in years and when I do, it is from CD Baby or some independant musician that I heard somewhere. But, I think they can't do it any more, (the labels) they are too far gone.
Back in the day, music and musicians were helping to define the culture, now they're part of the background noise...
The record companies shot themselves in the foot, they'd already gone down the path of one hit wonders when downloading caught on, and have never recovered. Never signing bands that have the ability to make a whole album. The pretty much design their own bands/music and it shows.
Truer words were never spoken...perhaps this is something that we should wonder why about?
just in case all this hi-tech PC stuff decides to crash one day coz someone switches a kettle on 3 doors away!! And the kind of stuff i like is mostly unavailable after 3 months on the 'shelves' anyway!! you know the old winter chill, cafe del mar stuff - i aint paying 18 quid for a cd on greedbay thank you! Oh by the way i am old enough to remember the 45's you got at the sweet shop for 20P!!!!Carol...
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