U.S. album sales continued to decline in 2006, down nearly 5 percent from the previous year, but total music sales were up thanks to a huge increase in digital downloads.
But digital sales increased by 65 percent over the previous year, with 582 million tracks sold, and digital album sales more than doubled, with nearly 33 million sold.
Billboard magazine senior correspondent Brian Garrity said consumers are buying more single songs and fewer albums, and that makes it harder for the record industry to maintain profits.
“At the end of the day, pop music is a singles driven business, so why would I want to buy a whole album?” Garrity said.
Larry Kenswil, president of Universal Music Group’s global digital division, said companies are looking at new ways to profit from digital downloads.
Gee whiz! Do you think Kenswil and his bubbas will stop trying to counter the decline in album profits by suing consumers?
Here‘s another link that doesn’t require registration.
God, the music industry really is dying. The best selling CD of last year only sold 3.7 million copies?! I remember back in 1991 when MC Hammer’s career was destroyed because his album “Too Legit to Quit” flopped by selling only 9 million. His previous album, Hammer Don’t Hurt ‘Em” had sold 14 million.
My analysis of the situation is that music sales will continue to shrink because the “entertainment” pie is being divvied up into more and more pieces, and some of them will have to shrink.
Kids and young adults (the traditional major buyers of music) have lots of alternatives, mainly video games and cellphones (ringtones, etc).
There is only so much do-re-mi to go around, and there will be losers.
2. Good point Lou, when I was a kid I certainly didn’t have 50 dollar video games to buy!
Good point about the (overpriced) games. I honestly think the games industry is going to have to deal with this type of thing in the not too distant future too.
but this quote just annoys me:
“At the end of the day, pop music is a singles driven business, so why would I want to buy a whole album?”
Perhaps the artists that are so over promoted in todays chart are like that, but I’ll be damned if all artists are like that. There are some albums I got this year where you’d never have heard of the artist through singles. Even the ones that did have singles – the singles were not the best thing on the album a lot of the time.
Garrity obviously has poor music taste.
“I honestly think the games industry is going to have to deal with this type of thing in the not too distant future too.”
What saves the game industry is that you can rent games fairly cheap.
“Perhaps the artists that are so over promoted in todays chart are like that, but I’ll be damned if all artists are like that. “
I think the focus is on “over promoted.” I totally agree that there is a ton of great CDs out there. But the industry as a whole is stressing pop fluff over substance.
Lets face it, once an artist achieves long term success, he’ll form his own label and keep the money for himself. Keeping a stable of essentially one hit wonders allows the labels to keep more of the profit, but the overall gross is greatly decreased.
I personally think this will change in the future. A series of one hit wonders does not create a stable and profitable music industry.
“personally think this will change in the future. A series of one hit wonders does not create a stable and profitable music industry.”
Personally, I think threatening, prosecuting, harassing and suing your customers does not create a stable and profitable music industry.
Not to mention rootkits, DRM infestations, unreasonable use terms…..
Duh, 2006 gave us crap from the potentially biggest sellers. the industry won’t advertise the good acts that don’t also look good, so there we are. If the recording industry thinks it’s going to sell a lot of Justin Timberlake or Twitney, they’re fools.
My daughter buys some top hits compilation CDs, and all the “songs” sound the same. As in, almost identical but for a few. Ya think the albums are any different?
Was there more music available before the internet? Was the music industry more vibrant? I seem to remember being more aware of songs/groups/entertainment. Like hear the radio play, see the group on Ed Sullivan, or better yet see the group in a concert or club. Now their seems to be no good source other than iTunes for new talent ot new product.
What do you think? Where is the good stuff out there?
The radio stations seem to be really crrummy compared to the past.
my 2c.
It’s also true that some current music wouldn’t have been out of place in a student bar in the early ’70s and that the current crop of kids and young adults still listen to some of their parents music and can copy it from the CDs we own.
8. “Where is the good stuff out there?”
It’s not being promoted by the major labels. They’re into what’s proven to be a hit and won’t really take chances promoting someone who is not great looking and who plays music outside of any strict radio format.
“The radio stations seem to be really crrummy compared to the past.”
While radio was always a “for profit” business, the rapid consolidation of the industry means that there is not a lot of diversity of programing. No one is taking any chances with new music. They all want to grab the largest audience so they play the most mundane music. Anything outside of their target market is avoided.
I thought Albums weren’t even available anymore.
Most people buy cds don’t they?
Why do I want to buy that stuff when I can just go to myspace and listen for free with out downloading?
Why do people want to blame the labels?
Look, the massive radio conglomerates (namely ClearChannel) which have snapped up countless radio stations and turned them into all the same station (and the republican led congress which allowed it to happen) is most to blame here.
By eliminating any diversification on the radio, they’ve forced the labels’ hand into pumping out the same junk to the mainstream.
Now, that being said, there is PLENTY of good, quality music being produced now. It’s just you now have to find it yourselves. Long gone are the days when you could turn on the radio and hear a great new band.
Do some checking, do some research, you’ll find plenty of great new music out there.
I love the idea that the record industry ISNT trying to compete..
Unless they are the fools I think they are, and OVER PAY for everyone and everything…They already Have/had a large profit margin…$3-5+ per album sold. But they Wont pull back on the price.
How many remember the $1-2 price of a movie?? Thats just as bad.
11. “I thought Albums weren’t even available anymore.”
You’re thinking of records. However, even LPs are still made.
An “album” is a collection of music released by an artist, regardless of what format it is in.
11 & 14,
I just bought a new LP for my girlfriend. It is fantastic and you will never hear one of the songs on the radio, the band is Grizzly Bear… Recommended at Good Records here in Dallas by a guy named CJ. This is one of the few ways of finding good music anymore.
Let’s see, we’ve had 78s, 45s, LPs, stereo LPs, reel tapes, 8-tracks, cassettes, CDs but now no new dominant format for a long time. Maybe the CD market is getting saturated?
The CD is also bulky for the current portable market. On most portable devices, one can’t hear the difference between CD-quality and something that takes 1/10th the MB space and 1/100th the physical space. At the opposite end, home stereo, it is 2 channels while many homes have 5.1, 6.1, 7.1.
So, only a 5% annual decline? CDs are selling very well!
Adding to my comment in 16,
Just checked the record, yep, pressed in London, England.
I find it strange, but after 18 comments nobody has said it…
EXTERMINATE!!!!!!!!!
Now I feel better. 😉
#14
better read up on that one…
notice definition number two doesn’t list other formats? It says a phonograph record or set of records.. not cds not tapes not 8 tracks … just records…
al·bum Pronunciation[al-buhm]
–noun
1. a bound or loose-leaf book consisting of blank pages, pockets, envelopes, etc., for storing or displaying photographs, stamps, or the like, or for collecting autographs.
2. a phonograph record or set of records containing several musical selections, a complete play, opera, etc.: Her album of folk songs will be out next month.
3. the package or container for such a record or records: The album has a pocket for each record.
4. a printed book containing an anthology of writings, reproductions of photographs or artwork, musical compositions, etc.
http://dictionary.reference.com/browse/album
I didn’t find your definition.. did you get that from wikipedia?
#2 – My analysis of the situation is that music sales will continue to shrink because the “entertainment” pie is being divvied up into more and more pieces, and some of them will have to shrink.
Kids and young adults (the traditional major buyers of music) have lots of alternatives, mainly video games and cellphones (ringtones, etc).
Any who “buys” a ringtone is about as stupid as the jackasses who use them are annoying… thus endeth my rant…
Gaming is cutting into the entertainment pie – but another thing that is very different now than when we were kids is exposure via the web.
Genres of music are cutting into each other.
When I was a kid in a small midwestern pig farming town it was crappy corporate rock, R&B, or country. Three monolithic and ultimately uninteresting chunks of musical crap.
I was lucky though that I had friends with siblings in places like New York and LA so I had “real” music filtered to me by cassette tape.
Today, there are many many more artist vying for your dollars and though the big studios are still in an 80’s mindset pushing marketing department created bullshit like Justin Timberlake… But many more artists are able to market themselves now… Theivery Corporation is just one good example of a band that controls its own destiny and takes a little chunk of the pie away from, say, Madonna…
#4 – Games are not overpriced.
#20 – Geeze Raff – SN is right
They’ve gone from $15 albums to $1 singles. When your business shrinks to 1/15th its previous size that has got to hurt. This is eventually going to kill the record companies. Artists might as well just release their new music to Apple.
My wife asked for a specific “album” for Christmas. (I won’t mention it is James Blunt so you’ll have to guess the artist.) Sure there is one hit single on it, something about a beautiful woman on the subway. But all the other songs are equally uninspired and sound the same. Nothing on the CD gets my attention or even makes me want to listen. Lousy riffs, lousy lyrics, lousy production, and lousy cover art.
Geeze, and I paid cash for it too. Well, at least I didn’t buy it for myself.
Raff.. come on.
That’s probably the worst definition of album I’ve ever heard. Dictionary.com is one of the worst dictionary sites out there for accurate definitions. If you want to be REALLY pedantic “album” is from Latin “albus” – “white” or “blank” and relates to a blank book or space in which something can be inserted.
All album means is a packaged collection of related things. Which is why you have a “photo album” or “musical album”
The term “record album” goes back to the days of 78s which were, by necessity, singles. Albums, containing pages like a photo album with sleeves to hold each record were common, and in the case of longer works (symphonies, Broadway musicals, collections of songs by one artist, etc.), complete books (or albums) were sold.
Later, with the arrival of the LP, the individual records and album pages were combined, but the name stuck.
Regards,
David
5 but I’ll be damned if all artists are like that.
Oh, come on…
He clearly stated “pop music”, not whatever you enjoy listening to.
#28, We don’t always agree but I have to admit, sometimes you have an amazing wit. That was good.
Call me old school — but I still like whole albums (CDs, LPs, cassettes … no matter.) rather than single downloads. On the best albums, my initial favorite will give-way to some of the others on the collection.
For singles I just listen to the radio — why pay ? I can always record a copy for myself if I really want it.
I can’t help give another plug for eMusic. What a great download service. Thousands of albums all by independent artists with no DRMs…. and a third the price of iTunes! (and, no, I don’t work for them)
My new streaming favorite is http://somafm.com/ but my two perennial favorites are http://www.radioparadise.com/ and http://www.kmtt.com/