U.S. Album Sales Down 4.2 Percent, Downloads Up 77 Percent

Sunday, July 09, 2006

 

LOS ANGELES ? U.S. album sales were down 4.2 percent in the first half of the year, but sales of music downloaded online soared 77 percent, according to industry figures.

 

Total sales of albums across different formats ? CDs, digital albums, cassette and others ? stood at 270.6 million between Jan. 2 and July 2, compared to 282.6 million in the same period last year, according to Nielsen SoundScan figures released Friday.

 

The top-selling album so far this year is a soundtrack inspired by the Disney Channel movie "High School Musical," which has sold more than 2.6 million units.

 

Albums by Rascal Flatts, James Blunt, Mary J. Blige and Carrie Underwood round out the top five.

 

The decline reflects in part a dearth of big hits compared to the same period in 2005, which saw Mariah Carey and rapper 50 Cent each release multi-platinum sellers.

 

"Considering that you haven't had a 50 Cent to be the Pied Piper during the first half of the year or a Norah Jones the year before that, being behind 4 percent in album sales is really not that bad," said Geoff Mayfield, director of charts for music tracker Billboard.

 

The R&B genre accounted for the biggest slice of all albums sold so far this year with 53,806, but also represented the biggest percentage drop ? 22.4 percent ? in units sold by genre from the same period last year.

 

The country music genre saw a 17.7 percent increase in sales over the first half of 2005, the highest percentage of all.

 

While the CD remains the dominant album format despite a sales decline in all but one of the last five years, music fans have been increasingly buying digital downloads of single tracks and full albums.

 

Nearly 281 million digital singles were purchased through July 2, compared to 158.8 million in the time frame last year. More than 14 million full-album downloads were purchased in the first six months of this year, more than double the 6.5 million bought in the first half of 2005.

 

The growth of online music purchases is a mixed blessing for recording companies, however. Such sales often come at the expense of more profitable album sales as music fans opt to cherry pick a few songs online instead of purchasing a whole album.

 

"Digital distribution is an answer to the consumer who's been throwing up that complaint," Mayfield said. "It's a changing dynamic that the industry still needs to get its arms around."

 

Despite rampant music piracy, overall sales of albums, singles, music videos and digital music totaled 564 million units, a 23 percent increase over the same six-month period last year.

 

Among the four major recording companies, Universal Music Group led the pack with a market share of 31.66 percent. Sony BMG Music Entertainment was second with 26.25 percent market share, followed by Warner Music Group's 19.30 percent and Britain's EMI Music's 10 percent.

 

Independent record labels accounted for 12.79 percent of market share.

Fox News

 

Capitalism 1, RIAA 0

people purchase songs on the internet? They pay for what should be free hmm.

 

Oh wells to each their own

i'm still using limewire--it's the best and free

just about the only advantage of downoading of iTunes and other pay sites is convenience

 

but why pay for something you can get for free?

I have trouble getting music for free. Even if I do download something, I almost always buy it unless it's a truly terrible album.

just about the only advantage of downoading of iTunes and other pay sites is convenience

 

but why pay for something you can get for free?

 

 

 

Maybe because its against the law?

 

:o

 

people purchase songs on the internet? They pay for what should be free hmm.

 

Oh wells to each their own

 

 

 

 

When you go to Publix, do you pay for the food that you get off the shelves?

 

 

 

 

And Juanky if you remember our previous discussion about music theft, I had pointed out that digital sales were on the rise. I'm all for digital SALES. Im just against theft.

overpayment of the music genre and movie genre is foolish in this country.

 

We have a market system about demands and supply.

 

With the computer age the demand for the product is lessend because the supply is. The wages of the individuals in the music recording, such as the artist will just need to drop drastically to compensate it.

 

basic economics. It is no different then taping a song off of the radio as a kid.

i use limewire and i burn dvd movies...but its all personal use with no fianancial gain...so i fail to see what the big deal is...plus im not a fan of making millionaires richer...but if i really want a certain cd or movie, i have no quams about buying it...i know some of these things are illegal but damn...i remember hearing its illegal to rollerskate in miami in a bikini, i dont see that stopping alot of girls(thank god)

And Juanky if you remember our previous discussion about music theft, I had pointed out that digital sales were on the rise. I'm all for digital SALES. Im just against theft.

Yup.

 

And I pointed out that music downloads wren't hurting sales of the music industry, just that the RIAA couldn't realize the modernization of music and adapt accordingly :thumbup

 

People will buy music if it's good, even if they hear it for free.

I enjoy iTunes in comparison to buying a full CD. Mostly because not every song on a CD is going to be worth the price (that's usually the case from my experience).

 

I know that some smaller bands have grown bigger through people sharing their music with friends. This includes bands that in the past, may not have been able to get a record contract.

 

Overall, the Internet has helped the music business, although I'm sure most music execs will tell you differently.

i use limewire and i burn dvd movies...but its all personal use with no fianancial gain...so i fail to see what the big deal is...plus im not a fan of making millionaires richer...but if i really want a certain cd or movie, i have no quams about buying it...i know some of these things are illegal but damn...i remember hearing its illegal to rollerskate in miami in a bikini, i dont see that stopping alot of girls(thank god)

 

 

 

 

Very few recording artists are millionaires. In fact I would put it around 5% are. That rationalization doesnt really work. :thumbdown

 

 

Im all for people breaking bikini rollerskating ordinances.

 

overpayment of the music genre and movie genre is foolish in this country.

 

We have a market system about demands and supply.

 

With the computer age the demand for the product is lessend because the supply is. The wages of the individuals in the music recording, such as the artist will just need to drop drastically to compensate it.

 

basic economics. It is no different then taping a song off of the radio as a kid.

 

 

 

 

You sure you want to call purchasing a track on ITunes for 99 cents overpayment?

 

:plain