CD is still the king

[Smokey]

Physical CD isn't going anywhere, at least not in 2012. According to year-2011 breakdowns just shared by Nielsen Soundscan, more than two-thirds of all albums purchased in the US were physical CDs. Out of a total of 330.6 million albums sold during the year - across all configurations - a healthy 223.5 million were discs, or 67.6 percent.

That follows an even more extreme breakdown from the UK. Just a few days ago, label group BPI revealed that 76.1 percent of all albums purchased last year were CDs.

Back in the US, album unit sales edged slightly upward on the year, specifically by 1.3 percent. CDs themselves slumped 5.7 percent, while digital albums gained a healthy 19.5 percent to reach a record 103.1 million units. Vinyl gained 36.3 percent to nearly 4 million units.

http://www.digitalmusicnews.com/research/3025.jpg

Digital Music News - Two-Thirds of All Albums Purchased In the US Are Still CDs... (http://www.digitalmusicnews.com/permalink/2012/120104twothirds#fmIvQWprR2eWu2tlUPGMUw)

[elapsed]

Up here in Vancouver, BC, traditionally the best places to buy CD's are HMV, FutureShop and Best Buy. I probably purchase 10-20 CD's a year.

But HMV is now closing down, and both FutureShop and Best Buy CD selections are getting smaller and smaller every quarter. I'd anticipate they won't be selling any more CD's by 2013.

I really believe 2012 will be the end of CD unfortunately. But thankfully I'm seeing more and more releases on vinyl, so it's not all bad news

Probably the only places to buy music in the future will be at small independent retailers. And DVD and Blu-Ray I think will be gone by 2015, replaced entirely by streaming media like Netflix, and downloads.

cheers,
elapsed

[Smokey]

I really believe 2012 will be the end of CD unfortunately.

I believe CD will be with us for while despite declining sales and growing digital sales. Maybe after digital albums outsell CDs as a whole we might see the shift of music industry away from physical format, but I would give it couple of more years.

[Ajani]

Interestingly enough, CNN's report says the opposite (That digital sales have finally surpassed CDs):

Digital music sales top physical sales - Jan. 5, 2012 (http://money.cnn.com/2012/01/05/technology/digital_music_sales/index.htm)

[Woochifer]

This topic is deceptive because it ignores the primary form of digital music sales -- individual song downloads. My understanding is that the revenue split between CDs and digital downloads is reaching parity, depending on whose estimate and what measures you look at.

[Smokey]

Interestingly enough, CNN's report says the opposite (That digital sales have finally surpassed CDs):

Digital music sales top physical sales - Jan. 5, 2012 (http://money.cnn.com/2012/01/05/technology/digital_music_sales/index.htm)

Only in digital domain :)


My understanding is that the revenue split between CDs and digital downloads is reaching parity, depending on whose estimate and what measures you look at.

To keep physical format floating, I'm puzzled as why music industry have not fully embraced high resolution format Bluray as BD players are becoming as common as DVD player in homes. Or maybe I shouldn't be puzzled after lookin at past history of music industry shooting itself in the leg when it comes to piracy and embracing high resolution formats.

[Mr Peabody]

Even at parity will music companies just forgo that income?

If CD goes it will be very strange for me as I am old fashion and still using discs, including LP. I buy most of my CD's via Amazon.

[Smokey]

Even at parity will music companies just forgo that income?

I say probably not. If there is market for it, physical format (in one form or other) will still exist. The down side to that scenario is that as market share in a format decreases, so does the selections.

[YBArcam]

Up here in Vancouver, BC, traditionally the best places to buy CD's are HMV, FutureShop and Best Buy. I probably purchase 10-20 CD's a year.

But HMV is now closing down, and both FutureShop and Best Buy CD selections are getting smaller and smaller every quarter. I'd anticipate they won't be selling any more CD's by 2013.

I really believe 2012 will be the end of CD unfortunately. But thankfully I'm seeing more and more releases on vinyl, so it's not all bad news

Probably the only places to buy music in the future will be at small independent retailers. And DVD and Blu-Ray I think will be gone by 2015, replaced entirely by streaming media like Netflix, and downloads.

cheers,
elapsed

You will be able to buy CDs from more than just small independents. Online is the future (and present pretty much) for CDs. Amazon, Elusive Disc, Acoustic Sounds, etc. HMV could have been more of a player if they would have built an online store. It's hard to believe in 2012 you can't purchase online from hmv.ca.

Like Woochifer said though, the topic is a little misleading. You have to compare CD sales to song downloads, not album downloads. I'm certain that most people don't bother downloading entire albums and just stick to the songs they know they like. Music will be poorer for it as artists inevitable stop making albums and instead release individual songs or just a handful of songs. Come to think of it, maybe that won't be so bad as I find most albums come with a good helping of filler.

[Rmac58]

I have to wonder about that article too, a single song vs an "album", just doesn't compute.