[gluteus maximus]

From CNET News

Warner Music Group, the label that represents such acts as REM and Green Day, is the second major recording company to report healthy growth in digital sales during the past quarter.

On Tuesday, Warner reported that digital sales in the quarter ended Sept. 30 grew 27 percent to $167 million, up from $131 million during the same period last year.

Two weeks ago, Universal Music Group, the largest of the four top labels, said digital music sales were up 33 percent for the first nine months of 2008.

Read more here: http://news.cnet.com/8301-1023_3-10108024-93.html

[Ashleyj]

Originally Posted by gluteus maximus

From CNET News




Read more here: Another label sees big digital-music growth | Digital Media - CNET News

I struggle to understand why there record companies make such a fuss about the drop in CD sales and then go on to congratulate themselves on increasing download sales. Surely they realise that people are only going to buy the music in one format, either digitally or as a CD, and not both.

[johnnydoen]

Originally Posted by Ashleyj

I struggle to understand why there record companies make such a fuss about the drop in CD sales and then go on to congratulate themselves on increasing download sales. Surely they realise that people are only going to buy the music in one format, either digitally or as a CD, and not both.

Because just 10 years ago the record industry could get away with selling full albums to people who wanted only one or two songs from an album.

Now the same people can hand pick single tracks, discard the rest and thereby save money.

[Ashleyj]

Originally Posted by johnnydoen

Because just 10 years ago the record industry could get away with selling full albums to people who wanted only one or two songs from an album.

Now the same people can hand pick single tracks, discard the rest and thereby save money.

Very true.
I must admit that I had not thought of it in that light as I am of the old school and still download full albums. As you say the ability to just buy the tracks you want for a percentage of the full price must really upset them, shame isn't it.

[skyforger]

Originally Posted by Ashleyj

either digitally or as a CD, and not both.

very true

[gluteus maximus]

Atlantic makes label history as digital sales surpass CDs

The music industry has come a long way from battling the threat of P2P and through the rise, and ongoing fall, of music DRM. Today, Atlantic has announced one of the most significant milestones in this transition, and one that many record label execs probably considered impossible just a few years ago: the last quarter was the first time in which Atlantic's US digital sales outpaced physical CDs.

http://arstechnica.com/news.ars/post...rpass-cds.html

gm

[Ashleyj]

Originally Posted by skyforger

very true

It's all digitally for me now Max, can't remember the last time I bought a physical CD.

[Martinman]

Originally Posted by johnnydoen

Because just 10 years ago the record industry could get away with selling full albums to people who wanted only one or two songs from an album.

Now the same people can hand pick single tracks, discard the rest and thereby save money.

The record companies are coming full circle. In the days when 45s ruled the turntables, record companies didn't like the thought of going to albums. They could sell far more 45s and it was cheaper than producing a whole album. Then music morphed into albums, 45s were out, and suddenly the record companies were making more money. People would buy an album and realize there were other tracks they liked.

I agree with what you're saying Johnny, they want to sell albums but now it's back to where you can pick and choose what you want. And I agree with others; what does it matter whether the music sales are in the form of downloads or physical CDs? They're still making money as sales grow but it's the same old story. I spend more money downloading in the long run because I get more bang for my buck here. I got so tired of giving my money to the record companies for one CD. Hell, I don't even know where my money goes on these sites (and I don't really care).

Martinman

[johnnydoen]

Originally Posted by Martinman

The record companies are coming full circle. In the days when 45s ruled the turntables, record companies didn't like the thought of going to albums. They could sell far more 45s and it was cheaper than producing a whole album. Then music morphed into albums, 45s were out, and suddenly the record companies were making more money. People would buy an album and realize there were other tracks they liked.

I agree with what you're saying Johnny, they want to sell albums but now it's back to where you can pick and choose what you want. And I agree with others; what does it matter whether the music sales are in the form of downloads or physical CDs? They're still making money as sales grow but it's the same old story. I spend more money downloading in the long run because I get more bang for my buck here. I got so tired of giving my money to the record companies for one CD. Hell, I don't even know where my money goes on these sites (and I don't really care).

Martinman

There are two other major reasons for music sales income has dropped for those guys:

1. Both when the old 78 albums were replaced by 12" vinyl albums and the cassettes, and when the 12" vinyl album and the cassettes were replaced by CDs, many, many people went out and bought a very large percentage of the albums they already owned, once again, in the new format. Luckily we have come to the end of that.

2. The competition from other media products has increased enormously the last 10 years. Now the music industry have to compete with games for X-Boxes, Wiis, PlayStations and PCs, DVDs (and Blu-ray discs*), cell phones and all the services, which applies to those etc. etc. etc.

Those are the same 10 years, they have spent fighting their very own customers both legally and with the single most stupid invention of the last 200 years: DRM.

*The movie industry is no better than the music industry, when it comes to trying to make (easy) money. Blu-ray may be much superior to DVD, but it sure wasn't created to please their customers, it was made, so people would go out and buy all their films once again in a new format, and the movie industry people would be able to laugh all the way to the bank. They might be successful this time too - but it will be the last time also.