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Album Sales Hit A New Low
08-31-2014, 11:25 AM,
#1
Album Sales Hit A New Low
Quote:As streaming gathers momentum, the U.S. music industry keeps breaking sales milestones -- the wrong kind.

This week's 3.97-million album sales tally is the smallest weekly sum for album sales since Nielsen SoundScan began tracking data in 1991. It's also the first time weekly sales have fallen below four million in that time span.

Last week was fairly slow for the top releases. The top album, Wiz Khalifa's Blacc Hollywood, debuted with sales of 90,000 units, a figure below the first-week sales of many other top debuts of 2014. Three other albums debuted inside the top 10 but averaged only 31,000 units apiece. And the Frozen soundtrack is no longer moving in excess of 100,000 units per week.

To compare, a year ago this past week (ending Aug. 25, 2013), 4.88 million albums were sold. But sales have been losing steam all year. The weekly average number of album sales fell from 4.75 million units in the first quarter to 4.55 million units in the second quarter. In the first 8 weeks of the third quarter, the average has fallen further to 4.2 million.

This decline is actually in line with historical trends. In 2013, average weekly album sales experienced a similar fate, falling from 5.7 million units in the first quarter to 5.23 million units in the second quarter and then 4.86 million units in the third quarter. This year, overall U.S. album sales are down 14.6 percent, while digital album sales are down 11.7 percent and track sales are down 12.8 percent.

As more and more consumers transition from purchasing music to streaming tunes, it's natural to see album sales shrink. This year, there have only been five weeks where album sales were above 5 million.

...While some major label executives claim that revenue from streaming, which continues to grow, is offsetting declining digital sales revenue, not everyone agrees with that assessment.

"This year the bottom fell out of digital sales to a degree that we never anticipated, which is why many companies are not meeting this year's revenue projections," laments one indie distribution executive.

http://www.billboard.com/articles/busine...tion=false
Reply
08-31-2014, 02:35 PM,
#2
RE: Album Sales Hit A New Low
Looks like I-Tunes has the upper hand, The digital age. Back when if you likes one or two songs you had to by the whole album.Now you just buy the song you like and ditch the rest. The artist looses out big time.
Reply
08-31-2014, 02:52 PM, (This post was last modified: 08-31-2014, 02:55 PM by Miguel.)
#3
RE: Album Sales Hit A New Low
The end of the article notes that digital sales (iTunes, etc) are being hurt by the streaming services (Pandora, Spotify, Beats Music, etc.)


Streaming services can give exposure to artists who can't get radio play.

The downside is they pay less in royalties than radio stations:

NYT:
Quote:Streaming services make sense for mainstream artists like Rihanna and Katy Perry, who are popular enough to generate substantial revenue from the royalties they make from streaming (usually a fraction of a cent every time a song is played).

But for independent artists, the economics of streaming is a tougher proposition.

http://www.nytimes.com/2014/07/07/techno....html?_r=0
Reply
08-31-2014, 03:19 PM,
#4
RE: Album Sales Hit A New Low
I don't think I -tunes is ready to jump ship, there still reeling in the cash.Dunno could be wrong but I cant see I tunes taking a serious hit by the streaming trend, not just yet,but all can change, just have wait and see. Bring back the transistor radio lol
Reply
08-31-2014, 03:19 PM,
#5
RE: Album Sales Hit A New Low
(08-31-2014, 02:35 PM)midnightblues Wrote: Looks like I-Tunes has the upper hand, The digital age. Back when if you likes one or two songs you had to by the whole album.Now you just buy the song you like and ditch the rest. The artist looses out big time.

No, record companies lose out big time.

The artists don't (and never have) made money off of their album sales. Unless they managed to get themselves a great contract. (which, especially new artists..have not.)
Reply
08-31-2014, 03:41 PM,
#6
RE: Album Sales Hit A New Low
Yeah the record co. have there butts covered
Reply
10-08-2015, 12:14 AM,
#7
RE: Album Sales Hit A New Low
Since this is about Apple's streaming service I thought it could go on this thread. What actually caught my eye is that Jimmy Iovine got himself out of the record business and into the streaming business -- with Apple no less.

Quote:Apple Music exec: Free music is a shell game we don't play
Jimmy Iovine, a top figure at Apple's subscription tunes service, says Apple Music doesn't want to build a business on the backs of artists, even at the expense of hundreds of millions of listeners.
http://www.cnet.com/news/apple-music-exe...dont-play/
[Image: 2477D84D00000578-2899938-Lawsuit_The_CEO...604770.jpg]
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