Friday, September 11, 2009

Digital Music Downloads Don't Make Up for Lost CD Sales

According to an article that I found on Fox News (linked below), music sales are continuing to fall. In the article it states that physical album sales fell 20 percent to 362.6 million, down from 450.5 million last year. Digital album sales rose 32 percent at 65.8 million units. Apple's iTunes Store also broke the 1 billion downloads mark this year as well.
The article goes on to list the trend of increasing digital downloads and decreasing physical purchases in some cases. It also goes on to talk about various artist releases and their labels. I felt that this article left out one factor for this year at least, and that is the current economic conditions. Nearly all products of any kind are selling to a lesser extent this year, perhaps the actual study factored this in. Personally, I prefer to purchase a physical cd, that is why I have many storage bins full of the things.
The reason I brought this article up is because it brings a variety of topics into discussion. One point that was made in the article is how Atlantic Records has recently become more selective on deciding which artists to promote. I have felt that some of these falling trends may be because there has been an increase in mediocre music releases. Perhaps this is not so, as quality is a matter of opinion. But if labels are more selective in their choices, and try to put their promotional resources into stronger compositions, I could see that as a potential factor in increasing sales.

- Derek Jenkins

1 comment:

  1. If you are the music marketer, and your choice of promotional spending is limited due to thinner projected profit margins, how might you structure your marketing plan differently? This is a question open to anybody. Post your replies or theories. - Kegan