cd sales

The above chart shows the percent increase/decrease in album sales in each week of 2008 versus the same week in 2007. It's obvious most of the curve is below zero, but the thing I have seen lately is that the trend is upward in the second half of the year.

Last week The Wall Street Journal ran an article on some artists' and labels' dissatisfaction with single track sales on iTunes hampering album sales. Kid Rock, for instance, doesn't offer most of his albums at digital stores.

Entertainment retailers are having mixed success in lessening their dependence on CD sales. Hastings reported lower earnings earlier this week. Its comp revenue was up 0.6% and gains in other product categories helped make up for an 11.7% slide in music sales.

Entertainment retailer Hastings reported a 0.2% slip in revenue in Q2 2008 (press release). Total revenue was $125.7 million versus $125.9 million in Q2 2007. Comp store music revenue, which comes from CD sales, fell 11.7%.

The use of the word "still" in the title really isn't necessary. iTunes isn't going to lose enough market share in just a few months to Amazon.com to drop below Wal-Mart. From today's NPD press release:

Just a few days ago I posted a Coolfer report on the state of the compact disc. It provides valuable insights and forecasts for anybody -- label, distributor, investor, retailer -- with a vested interest in the fortunes of the physical format. If you read the headlines, you'll think the CD is already dead.

A new Coolfer report titled "The State of the Compact Disc" takes a snapshot of the CD. It is a look at the format's struggles this decade, how retail has changed over the last few turbulent years, which factors will lead to continued lower sales and why potential still exists.

Nielsen Soundscan has released a mid-year update on recorded music sales (taken from this Billboard.biz article, which has many different numbers than Variety's article...possibly different accounting for

I'm at the beach for the week so I'll be doing some linkfests and light postes until after the 4th holiday. Enjoy and don't work too hard. - mdave

Music Business & Sales

The Changing Face of the Music Industry - Tenneseann.com

The July-August issue of the Harvard Business Review has an article by Anita Elberse of the Harvard Business School that puts a damp academic blanket on the firestorm created by Chris Anderson and his hit book, "The Long Tail." In