Can Music Survive Inside the Big Box?

_randy_64 writes "In a story that ties in nicely with a recent discussion about the possible reprieve for Net Radio, the Wall Street Journal asks Can Music Survive Inside the Big Box? The article discusses how the 'big box' stores (e.g. Wal-Mart, Best Buy) are cutting back on space and acceptance of music CDs. With 85% of music sales still coming from CDs, maybe this is another thing to push the music industry towards better online sales models? 'Thanks largely to aggressive pricing and advertising, big-box chains are now responsible in the U.S. for at least 65% of music sales (including online and physical recordings), according to estimates by distribution executives, up from 20% a decade ago. Where a store that depends on CDs for the bulk of its sales needs a profit margin of around 30%, big chains get by making just 14% on music, say label executives who handle distribution. One of these executives describes the shift as a tidal wave.'"

Comments

Music might survive if ...

[tjwhaynes]

Big box retailers are interested in volume and marginal pricing. The range of music they pick, the bands that get prominent shelf space and the albums that appear in the advertising will all be driven by the bottom line.

No - if we want diverse musical forms to survive the big box stores, it will be despite them, not because of them.

Small dealers will help - but at best they can only provide small niche markets. Internet sites tied to such retailers may help a lot. For me though, the future of diverse music depends on the internet providing the resources to find out about less known bands and albums and hear stuff I can't hear on the radio. But right now, the Internet Radio station is on the brink of an extinction event. So support Save Net Radio before it really is too late.

Cheers,
Toby Haynes