Best Buy, one of the U.S. largest retailers, will stop selling CDs in its stores from the 1st of July. The company made a revenue of about $40 million annually from the sales of the discs, which is apparently not enough. Interestingly, the company will continue to sell vinyl LPs for at least the next 2 years.
Best Buy has sent its suppliers a letter that it will stop selling CDs in its stores. CDs have been become less popular thanks to the increasing popularity of many streaming services such as Spotify, Apple Music, Google Play and Amazon Prime Music.
Of the tech giants, only Microsoft doesn’t have a popular offering for streaming music. Its Groove Music Pass never pulled off and Microsoft announced last year it would cooperate with Spotify in the future instead.
Especially Spotify has a fair share in the declining popularity of the CDs. However, the company has been not been profitable yet. The company is working on going public, which should generate cash to continue to grow. Nevertheless, the company is the market leader, with Apple Music catching up very fast.
Also Target is reportedly planning to make changes to the sales of CDs and DVDs. The company no longer wants to pay for having the discs in stock and only wants to pay studios when the discs are actually sold. The company planned to make this change at the 1st of February but reportedly moved the deadline now to the 1st of April or 1st of May.