U.S. Record Industry Sees Album Sales Sink to Historic Lows (Again)

The U.S. Record Industry continues to collapse in sales, but streaming is at an all time high.

http://www.billboard.com/articles/business/7430863/2016-soundscan-nielsen-music-mid-year-album-sales-sink-streaming-growth

From the article:

"First, let's bottom-line those disappearing sales. Album units overall fell 13.6 percent, with 100.3 million total sales. The compact disc continued to crumble, losing 11.6 percent and moving 50 million. Digital album sales fell to 43.8 million, from 53.7 million in the first half of last year. Vinyl sales continued to move up and to the right, growing 11.4 percent, to 6.2 million. New album releases have been most affected by the continued contraction, falling 20.2 percent overall, to 44.1 million units. Catalog albums fell "just" 7.7 percent, to 56.2 million.

Track sales also dropped, to 404.3 million units from 531.6 million units. Current track sales are leading the descent; songs released in the last 18 months saw sales fall nearly 40 percent. Catalog, again, saw a much smaller dip, down 6.4 percent to 236.6 million units."

Eyesore got married and had a couple of kids, U.S. album sales went into a severe decline.

Coincidence?

Fat Freddy wrote:

Eyesore got married and had a couple of kids, U.S. album sales went into a severe decline.

Coincidence?

He's responsible for at least one million of those lost sales.

Fat Freddy wrote:

Eyesore got married and had a couple of kids, U.S. album sales went into a severe decline.

Coincidence?

Sorry, guys.

Eyesore wrote:

Fat Freddy wrote:

Eyesore got married and had a couple of kids, U.S. album sales went into a severe decline.

Coincidence?

Sorry, guys.

I'm trying to pickup the slack, man, but even my best CD-scrounging hauls would probably be a "slow Tuesday" for you.

Japanese music albums are still doing well enough at selling in the millions. Obviously not as much as they used to, even there, but more so than the west. Being a Japanese music afficianado, part of it isn't just that I think Japanese are making more good, original contemporary music, but also that Japanese are a lot more shy in dealing with digital only purchasing because it gives out too much personal information. If you know the trends of Japanese YouTube users with their obscured faces and masks versus our much more outward western personas, you can see how, even with contemporary technology, the Japanese still prefer things a little more old fashioned, though they haven't really taken up the vinyl trend the same way we have here in the States.

Some of the music they had in the 90's makes some of what we had at the time look like a f*cking joke in comparison. It's amazing when I hear a lot of this stuff that didn't make it overseas because of the language barrier. The only other country/industry that had as much unheard gold this side of the coast is the UK/Euro and Scandivanian stuff, because even though much of it was in English, so much stuff went under the radar than what we really thought we were getting from that part of the world.

not surprisng

I mean most people perfer digitial, some perfer hard copy and some perfer both. (Im the last one) before you know it, itll all be either digital or usb sticks. more and more at least in my line of work I see more laptops coming without a DVD drive.

I miss actual music stores for me its Newbury Comics or FYE and neither are close

Addy wrote:

not surprisng

I mean most people perfer digitial, some prefer hard copy and some prefer both. (I like both)  before you know it, itll all be either digital or usb sticks. more and more at least in my line of work I see more laptops coming without a DVD drive.

I miss actual music stores for me its Newbury Comics or FYE and neither are close

We have FYE here and nothing else. They have a nice vinyl collection and it seems to be growing but their prices are too high. 69.99 for The Wall? No way! They had a used copy of it on 180 gram (reissue) that was 19.99 and that was pretty fair priced but I still did not get it (I have it on CD already so I opted not to get it). Once in a great while I will find a deal in FYE... We also have a small used record store here called Vinyl Press but the last time I was there it looked like they were on the way out. Their hours are "whenever" and the selection looked to be maybe 100 albums, down from the 2 or 3,000 they had back on Record Store Day. I used to score some decent stuff there in the used bin for a buck.

I still buy CD's but usually from Amazon. Even Walmart has gotten rid of their $5 bins, at least around here and Best Buy is a joke when it comes to music now.

If it's something I just gotta have I usually go iTunes but lately I have been going back and forth between them and Amazon. I love LP's for the nice artwork, readable lyrics and just sitting down and flipping sides. We don't even play CD's at home anymore (no working player) and just play vinyl only. If I want to hear a CD I rip it thru iTunes and put it on my iPod or phone (and even put records on my phone, was listening to Are You Experienced? on my phone this morning and it sounds fantastic.

I miss the bug stores. Turtles, Camelot, Record Bar, Sam Goody and Tower (although the last 2 I admit I never had those stores anywhere around where I have lived).

Lately have been scoring some cheap vinyl on EBay. Got the deluxe edition of Zep "Presence" for $15 with free shipping. I think the CD costs that much.

I assume this article is based on new album sales only..How many used Vinyl, Cd's and cassettes  (and even 8tracks and reel to reel) change hands every year...Does this also include new album sales on Ebay and such vendors... If the used stuff is considered I am sure it would drive the numbers way up..plus the number of units still being sold (according to this article) is still in the millions and that equals alot of money...They said Vinyl was dead a few years ago and that Video like DVD would go away..and here we are with New Vinyl, Cd, DVD and even cassettes selling in the millions plus they are printing and pressing the old albums at record rates...don't worry folks..hard copy's are not going anywhere...

I see stuff like this and my mind just ends up blown. There are a couple of things that immediately spring up on reflection:

-We're still talking about hundreds of millions of units sold for a product that costs very little to manufacture and which is light so shipping and storage ain't exactly dicey. It may be a decline, but if someone wants to tell me that Sony and BMG are losing their shirts, for example, I don't buy it for a minute.

-This always seems to be put forward more as a really lazy attempt at taste making. "Oh, look at those numbers. You sure you don't want to subscribe to Spotify so we don't have to manufacture these loser discs anymore?" It's always spun in this "Oh, look at how lame physical media is now," manner. Not only do I resemble the remark of being the lame guy trying to be cool with his pile of shiny discs, but it seems premature and unnecessary. Don't try to tell me that MP3 and streaming somehow compete with a physical format that's nearly indestructible if you take care of it AND which has better fidelity anyway.

-Anyone else wondering where the sales apparatus of these organizations are? Seriously, these people were able to sell stereo sound and color tv at a much higher markup two generations ago and suddenly they can't figure out how to offload physical media? This isn't just a lack of effort - it's a coma patient. With how common game systems are, pretty much every home has a Blu-ray player. Make that your new audio format and stop the "audiophile marketing" shlock already. Just get it out and make that the new thing. You can't easily rip them (yet), the packaging can be more involved than your average jewel case and, oh yeah, people ALREADY HAVE THE HARDWARE! Criminey!

I won't even charge the industry for my glowing insights.

You mean this thing?

https://en.wikipedia.org/wiki/High_Fidelity_Pure_Audio

Runicen wrote:

a physical format that's nearly indestructible if you take care of it

You know that's not really the definition of indestructible right? Pretty much everything is indestructible if you take really good care not to destruct it!

Fellas, physical media is deader than dead and won't be coming back.  Music just isn't important anymore and is essentially valueless to the average consumer.  People won't even pay for streaming services or downloads, let alone a CD.  The vinyl uptick is merely music lovers cannibalizing sales that used to go to CDs, plus a sprinkling of faddishness from young people jumping on the vinyl bandwagon as a fashion statement.

Physical formats will continue to shrink and become a completely niche market for older consumers and audiophiles.  We live in a different world now with endless entertainment options, so why would a young person limit themselves to only music?  They can pursue any niche hobby they'd like with ease.  Music is just another entertainment choice among millions of other possible options.  

We might not like it, but that's the truth.  Ultimately, it won't matter to any of us because there will always be bands, labels etc... that will cater to our niche.  However, the age of huge bands and monster record sales ended over a decade ago.

Well I move around alot so, digital is the way to go! Instead of using spotify i setup my personal cloud server with my Mp3 collection (about 15TB of 320s, FLAC/WAV are useless) The only reason I buy Cd is I can't find the download, I rip it and sell back at near retail value (only played once)~

THat is not to say, I don't support the bands! I tell my friends, I pay to see their gigs (if i can), I communicate with the band members on Twitter (most of them from Japan and I stick to bands from there these a days), etc ^.^

I started a small album collection recently as the wife bought me a Crosley record player for Father's day. It's the six in one and the it skips a bit, but it has decent sound. I hit up the local Newbury's last week for a few used LP's and one of the employees I know pretty well told me they are trying to clear more floor space for albums and are actively trying to get away from selling CD's. Like I said on this site a while back, they have been shrinking the disc sections and adding more vinyl and clothing. Me and the wife went to Cape Cod and the Vineyard last week and on the way home stopped at the mall in Hyannis for lunch. The Newies there was more clothing than music.

Witchfinder wrote:

Fellas, physical media is deader than dead and won't be coming back.  Music just isn't important anymore and is essentially valueless to the average consumer.  People won't even pay for streaming services or downloads, let alone a CD.  The vinyl uptick is merely music lovers cannibalizing sales that used to go to CDs, plus a sprinkling of faddishness from young people jumping on the vinyl bandwagon as a fashion statement.

Physical formats will continue to shrink and become a completely niche market for older consumers and audiophiles.  We live in a different world now with endless entertainment options, so why would a young person limit themselves to only music?  They can pursue any niche hobby they'd like with ease.  Music is just another entertainment choice among millions of other possible options.  

We might not like it, but that's the truth.  Ultimately, it won't matter to any of us because there will always be bands, labels etc... that will cater to our niche.  However, the age of huge bands and monster record sales ended over a decade ago.

Great points, WF. I guess it boils down to two types of music consumer - those that just want the music and those that want the music but also want the collectability aspect (bright artwork, different mediums, fill the man cave with stuff). Most folks don't value something tangible anymore and don't wish to be weighed down with stuff.

Lari wrote:

You mean this thing?

https://en.wikipedia.org/wiki/High_Fidelity_Pure_Audio

Yeah, but those are still marketed to "audiophile" markets. I don't know anybody who would spend upwards of $30 for a Blu-ray disc. Most new movies don't even sell for that. Make them $14.99 and down and I think you'd see them start to move. Then again, maybe I'm not the guy we want planning corporate futures.

Boris2008 wrote:

You know that's not really the definition of indestructible right? Pretty much everything is indestructible if you take really good care not to destruct it!

I'm going to have to plea sleep deprivation on that one.

I think the point I was trying to make is that a shelf full of CDs barring serious abuse is pretty much going to last longer than its owner. By contrast, tapes can demagnetize rather easily by accident and even just over time and records can warp, etc. There was a nugget of an idea there!

Witchfinder wrote:

Fellas, physical media is deader than dead and won't be coming back. Music just isn't important anymore and is essentially valueless to the average consumer. People won't even pay for streaming services or downloads, let alone a CD. The vinyl uptick is merely music lovers cannibalizing sales that used to go to CDs, plus a sprinkling of faddishness from young people jumping on the vinyl bandwagon as a fashion statement.

Physical formats will continue to shrink and become a completely niche market for older consumers and audiophiles. We live in a different world now with endless entertainment options, so why would a young person limit themselves to only music? They can pursue any niche hobby they'd like with ease. Music is just another entertainment choice among millions of other possible options.

We might not like it, but that's the truth. Ultimately, it won't matter to any of us because there will always be bands, labels etc... that will cater to our niche. However, the age of huge bands and monster record sales ended over a decade ago.

I may prematurely be adopting the "old fogey" vibe, but I think the problem I have with this is more with what it's a symptom of. Yeah, there's a lot more entertainment around, but it doesn't serve the purpose it used to. Art used to bring people together. I heard the phrase "unify the room" once to describe what pop/rock did. You don't see that now even with people embracing the "new" art or music or tv or whatever. In fact, it tends to be a pretty contentious subject because it's more about fashion, virtue signaling, or whatever. The stuff that's replaced the old music and physical media culture kind of sucks with teeth from what I see of it - just more banal, nasty, divisive garbage and we've got no shortage of that in every other area of life.

Granted, I'm not sure a few more million CD sales will really FIX that, so it's whatever.

They can have mah cee-dees when they pry'em from mah cold dead fingers!

MAH COLD! DEAD! FINGERS! AH SAY! (shakes fist)

I could be way off base here, but it seems like the last few months of online buying (for me anyway) have yielded some long time want list items for very short money that I know I would never have run across in a store. Especially with the dwindling CD sections. I wonder if people are selling off their discs to pay for vinyl the way they sold off their vinyl to pay for CDs 2 decades ago?

Fat Freddy wrote:

They can have mah cee-dees when they pry'em from mah cold dead fingers!

MAH COLD! DEAD! FINGERS! AH SAY! (shakes fist)

Hear! Hear!!!

chewie wrote:

Fat Freddy wrote:

They can have mah cee-dees when they pry'em from mah cold dead fingers!

MAH COLD! DEAD! FINGERS! AH SAY! (shakes fist)

Hear! Hear!!!

Yeah, but at our age it won't be long before our fingers are so arthritic that prying stuff from them won't be that difficult!

Boris2008 wrote:

chewie wrote:

Fat Freddy wrote:

They can have mah cee-dees when they pry'em from mah cold dead fingers!

MAH COLD! DEAD! FINGERS! AH SAY! (shakes fist)

Hear! Hear!!!

Yeah, but at our age it won't be long before our fingers are so arthritic that prying stuff from them won't be that difficult!  

To be honest, I had a shift in convictions about illegal downloading. Being a Christian, first and foremost, I had that whole 'if it grieves your conscience then stop doing it' thing. There's a myriad of other reasons behind it both theological and philosophical, moral, ethical, etc. but that's that. Christians may disagree but I've come to a different page. I do owe a lot of my early exposure though to the music I like to Napster, Megaupload, Mediafire, Soulseek and numerous other avenues before torrents existed. But since that happened, it realy lead me to think hard about the question of what albums I would keep and sell/trade if I had no other option. Then it occurred to me how much of a waste not only most of the CDs but even the downloads were among my collection because of how little of it was being listened to. There are, among my collection, artists who I had known for years, owning most of the discography, but never really listened to for the most part, because they were more like a 'conversation piece' to people who would potentially like them to say, "Yeah, this is what's out there." This is true with some of the more unusual J-Rock groups, but ultimately were not really favorites, per se.

I then went back to buying real CDs, but now I'm more careful about what artists and more importantly, which albums by those artists I choose to invest in. The only time I'd ever pirate and distribute something online illegally is if they're demos or some kind of recordings that are out of print and on the verge of being lost because no one is trying to preserve them. However, such things are few and far between and most of these kinds of recordings are either owned by the band (in copyright) or were never copyrighted to begin with. There's also the matter of whether or not the owner of it minds or enforces it. Some would say it gives silent consent when they ignore this material after its been posted online, since the act of enforcing copyright violations requires more to really reap any benefits from, but with major releases this is not always the case. Thing is, I spent a lot of time studying and contemplating what goes in to the work of these releases. Dipshits who say that everything should be free usually spend too much time taking everything for themselves on the internet and only read propaganda that doesn't really teach them how selfish we are as a rule, or much they're f*cking up the music they love when they do this. They think we're all Mother Teresa or something. The bands with the most successful kickstarters already had a reputation established long before they started asking for donations, so their fans had an idea of what to expect.

Therefore, the only time now that I rebel against copyrights is in the cases I mentioned, where I feel a piece of music is on the verge of being lost forever because it is not in widespread circulation and not available for purchase in some form or another. I know we bitch about labels getting more money than the artist, but back in the day, the funding from the label was in essence like Kickstarter. And if you've ever loved a song from a major published recording, it's likely that it was tweaked or molded more or less to meet the labels demands. So we are without excuse in that sense to claim that we do not consume or have liked compromised art in some form or another.