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CD Music Sales Down 20% In Q1 2007
prostoalex writes "Music sales are not just falling, they're plummeting — by as much as 20% when you compare January-March 2007 with the 2006 numbers. The revenue numbers are actually worse, since CD prices are under pressure. The Wall Street Journal lists many factors contributing to the rapid decline: 800 fewer retail outlets (Tower Records' demise alone closed 89); increasingly negative attitude towards CD sales from big-box retailers (Best Buy now dedicates less floor space to CDs in favor of better-selling items); and file sharing, among others. Songs are being traded at a rate about 17 times the iTunes Store's recent rate of sales. Diminishing CD sales means that you don't have to sell as many to get on the charts. The 'Dreamgirls' movie soundtrack recently hit #1 by selling 60,000 CDs in a week, a number that wouldn't have made the top 30 in 2005."
It would be nice to know that all ??AA content was moving 20% less of their volume, including the P2P stuff. How is the indie movement going? Are their numbers up? Let's hope so. Give the artist less incentive to join up with the RIAA and their types.
What?
This may have something to do with the garbage that the record industry keeps churning out. Seriously, the Dreamgirls soundtrack was #1? What does that tell you?
It may also have something to do with a downturn in the economy, uncertainty about the future, record levels of consumer debt, and energy prices that take up an ever-increasing share of people's budgets.
But, certainly, above all these factors, it must be the file sharing!!!
www.timcoleman.com is a total waste of your time. Never go there.
Basically it boils down to kids only having a limited amount of money buying other products which are cheaper. Video games, cell phones, and consoles are becoming cheaper yet cds are remaining expensive. Add to deteriorating job market and higher fuel costs which hurt teenage consumers the most, and you will find they would rather spend money on other items.
THe music companies have their price point figures off with supply and demand and should lower their prices like the game makers and cell phone companies are doing.
http://saveie6.com/
The more things change, the more they stay the same.
"There has grown in the minds of certain groups in this country the idea that just because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with guaranteeing such a profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is supported by neither statute or common law. Neither corporations or individuals have the right to come into court and ask that the clock of history be stopped, or turned back."
- Heinlein, Life Line, 1939
Consumers don't want to fund your lawsuits. Here are some things that the music industry may want to consider if it is to gain its customer base back:
1. Stop suing your customers. Clearly it's not scaring people out of music piracy, but it's definitely pissing people off.
2. Get rid of the DRM. You're just punishing your legitimate customers. Oh, that's right, if you sell music without DRM, people might pirate it. Because nobody pirates music now.
3. People understand economics better than you give them credit for. Given extra middle-men and the cost of production and shelf space, the per-unit cost of a CD is probably fairly high. On the other hand, it costs very little to send a copy of a song over the internet. People know this, and they know the dollar per song price point is high. Lower it. Hell, try cutting it to 25 cents, and you may find that you sell more than four times as many songs. Call it a promotion and see how it works out for you.
I got it directly from the artist's web site, and I paid them directly using PayPal. Was that counted for these statistics?
To give the artist even more credit, they put their *entire album* on their website inside a Flash player so I couldn't have downloaded it, but I suppose I could have hijacked the audio from my web browser. I bought the album because it's damn good, and I wanted to support the artist, and - of course - I wanted to be able to play the tracks in any order and on my iPod.
Kudos to the band Winterpills for showing just how to sell a damn album!
.
-- thinkyhead software and media
Question everything
The sooner the industry fails,the sooner music is back in our hands.
Music was here before the industry,it will be here afterwards.
What will change is;musicians will have a level playing field to promote themselves.
Listeners will not have talent arbitrarily selected for them by criteria of easy bulk promotion techniques.Instead we will get to decide what is good for ourselves.
Money will likely go directly to the musician for performance rather than royalty.
Open music and GNU like licensing will likely be the order of the day.
Internet radio will thrive.
Lets all do our part and quit giving the middleman money in exchange for continued abuse.
Just let it die.
*Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
The entire music industry is set up to abuse recording artists. Exorbinant marketting fees, a advanced based signing model, shady producers and a lot of very bad accounting that affects briteney spears as much as it does from . I had friends who had record promoters run up a 17,000 charges to book them in dive bars (within our own town). They never notified them of what was owed or outstanding until my friends demanded to know where they stood financially and the promoters handed them a 17,000 invoice for work and a bit of merch(a few dozen t-shirts, a few dozen logo'd props)... Most of the industry is crooked and sleazy and I won't cry a single tear if every studio that comprises the RIAA went banrupt and all the artists had to fend for themselves. It means the wolves have died and the lambs need to figure out how to get eaten without them.
"There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
Wow! I didn't realize that iTunes was selling that much.
More seriously, these press releases always blame filesharing. It's a boilerplate complaint every time CD sales go down. In fact, it would be Man-bites-Dog news to read, CD sales rise while filesharing rates decline.
What I think is happening is that there is a more informed consumer that doesn't buy the record industry's garbage any longer. Ever bought a CD that had only one track worth listening to? I have -- more than once. Or bought a song you only cared to listen to a dozen times, but you bought it anyway? I have -- more than once. How about a song you wouldn't have bought at all if you'd listened to it first?
The record industry used to sell you a take-it-or-leave-it bundle of songs at a price of their choosing. If it wasn't on an overpriced single (relative to the cost per song when bought by the album), you bought the whole album album. Consumer cassette recorders came along and mix tapes arrived soon after that. The record industry responded with the higher quality of the never-wears-out CD. It took 15 years for affordable CD burners and blank media to arrive before you could reproduce a CD containing only songs you wanted to hear. All this time the record industry was able to bundle in a bunch of B-sides or worse on your only other choice of albums.
Now, finally, consumers are thinking in terms of single tracks. Why? iTunes store sells them that way, iTunes on your computer rips CD's on a track basis, and iPods set playlists by track. The We'll-Decide-What's-Right-For-You albums are dead. The industry just doesn't know it yet. All its contracts with its artists are at the album level. The album will be completely dead when recording contracts specify a certain number of songs, rather than albums. And that's why sales are falling. Consumers want singles to mix and match as they please, and the became easily possible to get them for free via filesharing long before the record companies started selling them that way. The record companies are blind and stupid for not seeing, and reacting, to this when Napster first surfaced, and still haven't learned this lesson. As such, they are attempting to utilize fear (we'll sue you), guilt (think of the artists), the courts (we have sued you), and lawmakers (remember our senator from Disney?) to force you go consume your music their way -- which it not our way any longer.
They will lose, but do a lot of damage on the way down.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
What I really want to share is a conversation I had with a mid-western independent record store owner last weekend. Whenever I happen to be in this little town where I was, I always try to stop in and patronize his store. He has got cool stuff you can't find anywhere else (read Wal-Mart, Target, Best Buy, etc) and it's organized so things are pretty easy to find. He also carries a large selection of smoking paraphenelia - try finding that at your local big box, lol.
Anyway, I asked him straight up how downloads had affected his business. "Not much really. It's Target that's killing me", he replied. "Not Wal-Mart?" I asked. He told me that, "Wal-Mart doesn't carry the explicit versions, but Target does. They can sell it for less than I can buy it. We used to have a good crowd on release Tuesdays, but now they all go to Target."
"So the downloaders aren't hurting you at all?" I asked again. "They don't have any money to buy CD's with anyway, so I really haven't seen much impact from downloading", he stated matter of factly. And you know, as he added up the total for the 6 CD's I was purchasing, I realized he was absolutely correct. The total was $105. Now I have a pretty good job and can afford to splurge on some CD's once in a while, but the average joe college, high school kid or even single mom could never afford what I just dropped on 6 CDs.
It was then that I realized what I had bought and why. I bought one of my favorite LP's, Pretenders II which has been remastered and a live disc added. So now I have the LP, the CD and the remastered CD. Chrissie deserves my money though and it sounds much better, so I don't begrudge that one. But the point is, here we go again, they are selling me the same thing over and over in a different format. Next it will be some DRMd DVD thing that I won't be able to put on my iPod. It is really getting old.
Three of the other CD's were stuff I had downloaded and wanted the CD. The other was actually the new Stooges CD. I guess the point here is that instead of prices going down, they seem to be going up (except at Target). The specialty retailer is a dying breed as price becomes a much bigger factor in the purchasing decision than selection, customer service and just having someone to talk to about music in general. Ever try to have a conversation with a Target or Best Buy salesperson about the time you saw the Scorpions and Iron Maiden on the same bill? Think they'd stand around for even a few sentences.
So what's the inconvenient truth revealed here? It's that downloads aren't killing the retail music business. The music business is killing the music business. You want to sell more product, price it competitively. $105 for 6 CD's is outrageous to me and I only bought them because I want the store to be there when I come back to that town in a few months and pay them another visit. It was the least I could do. Now, I've got to go to the library and see what's on hold for me there. Thank god for the library!