U.S. Album Sales Dropped 12.8% Last Year

full story here: http://www.billboard.biz/bbbiz/industry/retail/u-s-album-sales-dropped-12-8-last-year-digital-1004137880.story

U.S. Album Sales Dropped 12.8% Last Year, Digital Tracks Post Small Gain

January 05, 2011
By Ed Christman

As expected, the year-end Nielsen SoundScan numbers once again tell a tale of an industry in turmoil.



There were a few bright spots, but 2010 was mostly about diminishing returns. During the 52 weeks ended Jan. 2, album sales in the United States fell 12.8% to 326.2 million units from 373.9 million units in the prior year, as the sales of CDs fell by nearly 20% for the fourth year in a row.



In the digital realm, growth in individual track sales continued to slow, barely managing to eke out a 1% increase, as sales reached 1.17 billion units, versus 1.16 billion in 2009.



Digital album downloads fared better, posting 13% growth to 86.3 million from the 76.4 million scanned during 2009, accounting for nearly 26.5% of all U.S. album sales last year, according to SoundScan.



Combined U.S. sales of albums and track-equivalent albums (or TEA, where 10 tracks equals one album) fell 9.5% for the year to 443.4 million units from 2009's 489.8 million units, according to SoundScan.



For the first time in the digital era, overall music unit sales -- which count each sale of an album, digital track and music video as one unit -- fell 2.4% to 1.51 billion units from the 1.55 billion units in 2009.



On a more positive note, five tracks topped 4 million units in 2010 (versus four songs in 2009), while another seven songs scanned more than 3 million each, versus three in the previous year. However, 2010 only produced 86 songs overall that each scanned 1 million units or better, three less than the 89 that accomplished that feat in the prior year.



The top-selling song, Katy Perry's "California Gurls," scanned nearly 4.4 million units last year, which in 2009 would have ranked third behind the Black Eyed Peas' "Boom Boom Pow," which tallied 4.8 million tracks, and the group's "I Gotta Feeling," which garnered nearly 4.43 million units.



In another telling sign about the nearly static track-download market, the single highest-scanning week since the advent of downloads remains the 47.7 million units scanned in the week ending Dec. 28, 2008. In fact, 2010's single-week track scan peak of nearly 44 million units didn't even beat out the best track week in 2009, which was nearly 44.8 million units in the week ending Dec. 27 of that year.



Album sales continued to decline, hurt by downloading at unauthorized peer-to-peer networks and shrinking shelf space at fewer brick-and-mortar retail outlets. For the year, only 13 albums managed to scan more than 1 million units, with the best-selling title being the 3.4 million units scanned by Eminem's "Recovery." That represents a new low in the SoundScan era, even worse than 2009 when only 22 albums scanned a million units apiece.



In a reversal of a trend, catalog albums (titles more than 18 months old that don't meet any of the other current-title qualifications) were a drag on album sales, falling 15.3% to 138.9 million units from 163.9 million scans in 2009. Current albums (those recorded in the first 18 months that stay in the top half of the Billboard 200 or are active at radio) declined 10.8% to 187.3 million units, from 209.9 million units in the prior year. In the five prior years, catalog albums had outperformed current album sales.

On a related note, Eyesore's album purchases have dropped 12.7% last year. Coincidence?

It's a bummer going into the "real" world for CDs. I was at Best Buy two days ago with my girls, and they just have a handful of CDs. I was at a great shop in Paris last month, but it seems in the US those places are dying.

I'm surprised that nearly 330 million units were sold last year in the US. I haven't really been keeping track of sales for the last few years, thanks for the article Shawn.

Major cities are really the only place left to get CDs in a brick and mortar store. Forget about all the retailers like Best Buy, they have other items that sell more and take up less space.

DVD sales are tanking now too, that's why you see so many REALLY cheap DVDs, sometimes as much as 60% off retail. Some of the smaller used stores aren't even buying movies anymore unless they are music or "out of print" genre films.

The available physical formats are dying out quickly and the record companies are still dragging their feet trying to figure out what to do next.

Shawn D. wrote:

that's why you see so many REALLY cheap DVDs

Which is fine by me. I haven't paid more than ten bucks for a DVD in my life.

There are always great deals to be had when a format starts dying off.

Not surprising that CD's are dying, the record labels refused to budge on prices, you have a generation of buyers who have never purchased a CD, even if they wanted to, Best Buy, Walmart have been carrying fewer CD's , FYE and other stores have closed up lots of shops and also are economy has not fully recovered.

Also should not record label bosses are a bunch of clueless dumbass's who sowed the seeds of their destruction.

IMO if they stopped reissuing the same albums over and over, and lower prices to a reasonable price and more importantly stop the madness of having CD's sound quality imnproved instead of this loudness crap, these tools might be able to turn it around, but I doubt that will happen, they are too busy wringing their hands and sniffing coke to think outside the box.

The dumbass record label bosses are the ones that let the "digital genie" out of the bottle in the first place. If they hadn't shoved CDs down our throats initially...they wouldn't be pissing and moaning because EVERY album ever released is available for free online.

You couldn't make 5000 exact copies of an LP, you could make a cassette copy or if you were really hip, a reel to reel copy, but you added tape noise when you did.

When they abandoned analog and went digital, they dug their own graves.

...and I'm laughing my ass off at their expense.

manny wrote:

Also should not record label bosses are a bunch of clueless dumbass's who sowed the seeds of their destruction.

Exactly. Over a decade ago when I worked at BMG Distribution, not only were the fat cats on top clueless about the music and artists, but the people who were paid to push the products often had no clue as to who a majority of the artists were, at least in the sense of their history and what kind of fans they had. The place really left a source taste in my mouth in terms of the industry. But at least I got about 30 free cd's a month out of it

Shawn D. wrote:

The dumbass record label bosses are the ones that let the "digital genie" out of the bottle in the first place. If they hadn't shoved CDs down our throats initially...they wouldn't be pissing and moaning because EVERY album ever released is available for free online.

You couldn't make 5000 exact copies of an LP, you could make a cassette copy or if you were really hip, a reel to reel copy, but you added tape noise when you did.

When they abandoned analog and went digital, they dug their own graves.

...and I'm laughing my ass off at their expense.

So True.....................

The only people I feel sorry for are the actual musicians. I couldn't care less that a record exec had to settle for a speedboat instead of a yacht.

Record labels in general aren't bad and theoretically they can do A LOT of good. There are a number of quality record labels but it's the majors that set the pace, screwed it all up and are STILL screwing it up.

At least bands have gotten smart in regards to merchandise and tour, tour, tour.

scottmitchell74 wrote:

It's a bummer going into the "real" world for CDs. I was at Best Buy two days ago with my girls, and they just have a handful of CDs. I was at a great shop in Paris last month, but it seems in the US those places are dying.

Not only that, Best Buy's CD section has been cut in half in the stores around here. I love living in this county but I do envy Europe and other places were music is still appreciated. Great CD stores, at least in this area, are sadly a thing of the past. If it wasn't for a handful of used CD stores, internet shopping would be my only source of music.

I dont think there has a been a lot of good music to buy either. The Top 40 stuff is recycled from one artist to another and I think people get tired of it.

This is not surprising to me at all, although I plan to continue collecting CDs for the rest of my life.

Nico wrote:

This is not surprising to me at all, although I plan to continue collecting CDs for the rest of my life.

i dont about myself... i am fighting the urge to go all digital...

You guys do know that CDs "ARE" digital, right?

Shawn D. wrote:

You guys do know that CDs "ARE" digital, right?

i meant in lieu of the physical product.....

exact33 wrote:

Nico wrote:

This is not surprising to me at all, although I plan to continue collecting CDs for the rest of my life.

i dont about myself... i am fighting the urge to go all digital...

I just don't see myself doing that. I couldn't bring myself to purchase a digital download. I'm paying for a code? I need a physical product. Something tangible. Like when the Cowardly Lion was given "courage" from the Great and Powerful Oz. He at least got a pretty bitchin' medallion outta the deal.

If you want tangible, buy an LP, it sounds better too. Plus, most new LP's come with download cards so you can also get .mp3 versions of the songs. 2 formats for the price of 1.

The loudness war isn't nearly as bad in vinyl land, because you can't master vinyl that hot.

Shawn D. wrote:

If you want tangible, buy an LP, it sounds better too. Plus, most new LP's come with download cards so you can also get .mp3 versions of the songs. 2 formats for the price of 1.

The loudness war isn't nearly as bad in vinyl land, because you can't master vinyl that hot.

The turntable on my dashboard skips too much.

Seriously though, I spend enough on cds as it is. I don't have the money or time to invest in vinyl at this point in the game. If I start coming home with records, the wife will borrow Freddy's wife's stapler and make the painful connection to my lower abdominal area and forehead.

Current CD mastering practices (and this started around 1997) has turned me off so completely on the format that I won't be purchasing any more unless it's released by a company like Mobile Fidelity or Analoge Productions who take pride in their work. Unfortunately, those CDs are generally more than double the price of a standard CD.

However, there are some really fine vinyl reissue programs going...and since vinyl is the only format that is actually increasing in sales (even though still very small), the reissue programs will continue.

I can take a new vinyl record, transfer it into the computer and make a compact disc that SMOKES any CD in quality, so I don't need the digital, I'll make my own.

Shawn D. wrote:

If you want tangible, buy an LP, it sounds better too. Plus, most new LP's come with download cards so you can also get .mp3 versions of the songs. 2 formats for the price of 1.

The loudness war isn't nearly as bad in vinyl land, because you can't master vinyl that hot.

Does that mean Death Magnetic sounds better on vinyl or did they screw that up as well?

Death Magnetic was distorted in the final mix, before it ever went to mastering, so no, it's still hosed.

I have heard people say that it's not quite as bad, but I'm not going to waste the money to find out.

Shawn D. wrote:

Death Magnetic was distorted in the final mix, before it ever went to mastering, so no, it's still hosed.

I have heard people say that it's not quite as bad, but I'm not going to waste the money to find out.

It sounds better on vinyl