Jun 23 2009
Interesting Industry Stats
If you haven’t read the Nielsen presentation for NARM, download it now. Some interesting insights and stats (summarized from winkscollectibles.blogspot.com), such as:
- Digital music is now 40% of the total music purchases compared to just 8% in 2005. It is projected that it will hit 50% by the end of 2010.
- Purchases are being made less at mass and chain/electronic stores and more at value oriented outlets (dollar, mass merchandisers, clubs) and on-line. Between 2001 and 2009, chains like Best Buy’s share of the market has gone from 54% to 32%, independent music stores from 14% to 7%, mass merchandisers like Wal-Mart from 28% to 33% and non-traditional sources such as iTunes, Amazon and Starbucks from 3% to 29%.
- Digital music buying was done most by fans of rock music, with 41% of all purchases coming from an on-line source. That’s compared to only 6% of sales for country albums.
Dear Jason,
I just came across these statistics and found them very interesting. The fact that the music-purchasing model is changing so incredibly quickly is especially surprising. 8% in 2005 compared to 50% by 2010? Pretty soon, all music sales could be digital! It’s a definite signal of the transition of the music industry into the digital world. But there is something about the feeling of having a crisp, new, hard-copy of one of your favorite artist’s CDs. It feels almost like I’m supporting the artist directly instead of going through another source. In the future, could you see the old-fashioned method of hard-copy CD-buying becoming obsolete? Or do you think loyal fans of the tried-and-true method will continue to make their way out to the stores to buy music?
-Meg
Jason, Meg,
These stats are not all that surprising. Sure, it is definitely happening fast but didn’t we expect this with Apple’s development of iTunes? The major record companies saw the industry shifting in this direction and thought they could get a head start on it. There for awhile they were ahead of the game but now that the digital industry is spinning out of control (which was predicted) the majors fear that music will eventually be free (they have already accepted this illusion as reality). Surely, hard-copy CD-buying will definitely become obsolete. If digital sales are to hold more than 50% of music-purchasing by 2010 you can predict that the only hard-copy CD anyone will be able to purchase is memorabilia. I absolutely agree with Megs statement “there is something about the feeling of having a crisp, new, hard-copy of one of your favorite artist’s CDs. It feels almost like I’m supporting the artist directly instead of going through another source.” Technology has not feelings. Welcome to the digital age.
Dear Jason,
I just came across these statistics and found them very interesting. The fact that the music-purchasing model is changing so incredibly quickly is especially surprising. 8% in 2005 compared to 50% by 2010? Pretty soon, all music sales could be digital! It’s a definite signal of the transition of the music industry into the digital world. But there is something about the feeling of having a crisp, new, hard-copy of one of your favorite artist’s CDs. It feels almost like I’m supporting the artist directly instead of going through another source. In the future, could you see the old-fashioned method of hard-copy CD-buying becoming obsolete? Or do you think loyal fans of the tried-and-true method will continue to make their way out to the stores to buy music?
-Meg