Music sales fall to their lowest level in over twenty years

[Camacho]

timesonline.co.uk

June 18, 2008

Music sales fall to their lowest level in over twenty years

Dan Sabbagh, Media Editor

Worldwide music sales have tumbled to their lowest level since 1985, the year that Jennifer Rush topped the singles charts in Britain with The Power of Love and Dire Straits released Money for Nothing.

The equivalent of 1.86 billion albums were sold last year, counting ten sales of individual songs as the equivalent of one album, according to figures published yesterday by the IFPI, which represents music companies worldwide.

Album sales were down 11 percent, from 2.09 billion, in figures that include paid-for downloads. In 1985, unit sales were 1.8 billion, as the CD began to increase in popularity, a run of growth that peaked in 1996 with sales of 3.4 billion.

The main cause of the decline continues to be collapsing CD sales, hurt by illegal copying, that are not being offset by growth in download sales. Record company revenues tumbled 8 percent last year to $19.4 billion, after CD sales fell 13 percent – more than offsetting the 34 percent growth in the smaller digital business.

In Britain alone, revenues tumbled 13 percent to £1.02 billion, with Amy Winehouse’s Back to Black as the top-selling album. Industry revenues from CD sales plunged 16 percent to £871 million, while digital sales in the world’s third-biggest music market increased 28 percent to £132.2 million.

Presenting the statistics, the IFPI called for internet providers to work with the music business to stop illegal copying. John Kennedy, its chief executive, said that between 50 percent and 80 percent of internet service provider traffic was accounted for by illegally swapped content.

The IFPI wants internet providers to reveal details of their customers who illegally share music and possibly cut off any subscriber who breaches copyright three times. Mr Kennedy said that providers should engage constructively, before the tools of legislation or litigation were invoked to require them to act.

Governments are beginning to look hard at copyright enforcement. Ministers have considered legislating for a “three-strikes” policy that could punish internet users with disconnection, but they want music companies to try to reach voluntary agreements with internet suppliers first.

Andy Burnham, the Culture Secretary, said that while regulation was not the first preference, he did not feel that he could stand by and ignore wholesale breaches of copyright. “British music is one of our biggest success stories. I don’t want to see it wasted away,” Mr Burnham told the Broadcasting Press Guild yesterday.

Music companies and lobbyists are trying to reach agreement with internet providers. This month Virgin Media agreed that it would write to consumers who were engaged in large amount of music copying, based on information supplied to it by the BPI, Britain’s record company trade body.

However, industry executives said that the gloomy data was nothing new. A spokesman for Vivendi’s Universal Music, the market leader, said: “This must be the tenth consecutive year we’ve read the obituary for the music business, but we are still here.”

We hummed

Top five songs in 1985

We Are The World — USA for Africa

Take On Me — Aha

I Want to Know What Love Is — Foreigner

Shout — Tears for Fears

Into The Groove — Madonna (based on worldwide chart positions)

Bestselling UK single: The Power of Love — Jennifer Rush (it did not chart in the US)

For the record

Top ten global bestselling albums of 2007

1 High School Musical 2 — High School Musical 2 (Walt Disney Records/Universal/EMI)

2 Back to Black — Amy Winehouse (Universal)

3 Noel — Josh Groban (Warner)

4 The Best Damn Thing — Avril Lavigne (Sony BMG)

5 Long Road Out of Eden — Eagles (Eagles Recording Co/Universal)

6 Minutes to Midnight — Linkin Park (Warner)

7 As I Am — Alicia Keys (Sony BMG)

8 Call me Irresponsible — Michael Bublé (Warner)

9 Life in Cartoon Motion — Mika (Universal)

10 Not Too Late — Nora Jones (EMI)

Source: IFPI (includes physical and digital formats)

[Guest nothingfails0603]

sales aren't down because of pirating (just look at Lil Wayne and Coldplay!!), they're down because radio doesn't play what consumers want to hear

[HolidayGuy]

nfails, you're veering toward candylips territory with your constant whining/bitching & moaning about radio- just thought I'd tip ya off to that in case you weren't aware.

Lil' Wayne has gotten a lot of airplay- radio is playing what people (not all, obviously) wanna hear. And Coldplay's airplay is increasing nicely.

First-week sales seen by LW and Coldplay are few and far between, as we've seen this year- before them, no album topped 500K in debut-week sales.

Radio works now the way it's always worked. I think the advent of the digital single- even for actual non-singles- and the availability to buy tracks individually has put a hamper on album sales, somewhat. Now, savvy consumers can cherrypick tracks they like without having to buy the whole album.

People are still buying albums- the insustry just needs to do something to reverse the downward trend.

[Alexz]

sales aren't down because of pirating (just look at Lil Wayne and Coldplay!!), they're down because radio doesn't play what consumers want to hear

Not quite. Your theory only applies to the US not the whole planet.

[Guest nothingfails0603]

Not quite. Your theory only applies to the US not the whole planet.

well, it's the collapse of US sales why worldwide sales are so low in general. Take us out of the market, and I highly doubt it's that different than 10-15 years ago without the US market

[Guest nothingfails0603]

nfails, you're veering toward candylips territory with your constant whining/bitching & moaning about radio- just thought I'd tip ya off to that in case you weren't aware.

Lil' Wayne has gotten a lot of airplay- radio is playing what people (not all, obviously) wanna hear. And Coldplay's airplay is increasing nicely.

then explain Amy Winehouse and Rihanna. I actually do like Rihanna and think she (along with Beyonce) are the closest thing to a mixture of r&b and dance-pop that exists today, but explain why she had four big hits and her album is struggling to get past 1.3 million, while Amy Winehouse is inching towards 2 million and radio couldn't be arsed to play her.

Radio seriously needs to stop courting kids and realize ADULTS are the people who buy cd's more these days. The Eagles and Josh Groban were two of last years biggest sellers and I can bet that less than 1% of the people who bought them for themselves and not as gifts were 14 or under. Everyone is so demographic obsessed, but yet adults are the biggest consumer market these days (and even stuff like High School Musical and Hannah Montana is shit they're buying for their kids) but radio completely misses that mark. It's the 20-50 year olds who grew up with buying music who are still buying albums, but radio misses the boat completely and tries to cater to 13 year olds.

[HolidayGuy]

Radio play does not guarantee big album sales- no one ever said it did. It's funny, because there was some study released that said airplay leads to bigger sales, like that's some kind of revelation. It can help, for sure- but it's no guarantee that an album is going to benefit hugely from hot singles.

Amy Winehouse had a lot of buzz for her album because it had very strong word of mouth- it was a mixture of acclaim and popularity ("Rehab" was a top 10 hit, wasn't it?) Rihanna's "Umbrella" was an acclaimed single, but her album, not so much.

[Guest nothingfails0603]

Radio play does not guarantee big album sales- no one ever said it did. It's funny, because there was some study released that said airplay leads to bigger sales, like that's some kind of revelation. It can help, for sure- but it's no guarantee that an album is going to benefit hugely from hot singles.

Amy Winehouse had a lot of buzz for her album because it had very strong word of mouth- it was a mixture of acclaim and popularity ("Rehab" was a top 10 hit, wasn't it?) Rihanna's "Umbrella" was an acclaimed single, but her album, not so much.

wasn't Rehab a case like Feist's 1234 where it had a few good weeks thanks to high iTunes sales, then as soon as sales tapered off, the song was on it's way off the chart?

[HolidayGuy]

^Not quite. "1234" spent 1 week in the top 10 (peaking at No. 8), 3 weeks in the top 40 (and top 50). "Rehab" spent 4 weeks in the top 10 (peaking at No. 9), 9 weeks in the top 40, 12 weeks in the top 50. Furthermore, "1234" never cracked Hot 100 Airplay; "Rehab" did, peaking at No. 29 and spending 9 weeks on the survey.

[Ciccone's Cheeks]

^ I actually agree. Whats really the difference, seriously, between Winehouse, Macy Gray, Lauren Hill, Meredith Brooks, Paula Cole lol etc etc etc..theres SO many, but I made my point lol. When the media hypes the living shit of those new potentially new gritty, Janis Joplin like revolutionary new voices/ singers, most people, esp Americans eat it up, buy everything they do, then a mere few yrs later they end up like poor little Alanis . U didnt get bigger than that woman '96-98 to the max, yet now shes barely known, by most younger than 18 yrs old now lol.

[Ciccone's Cheeks]

then explain Amy Winehouse and Rihanna. I actually do like Rihanna and think she (along with Beyonce) are the closest thing to a mixture of r&b and dance-pop that exists today, but explain why she had four big hits and her album is struggling to get past 1.3 million, while Amy Winehouse is inching towards 2 million and radio couldn't be arsed to play her.

Radio seriously needs to stop courting kids and realize ADULTS are the people who buy cd's more these days. The Eagles and Josh Groban were two of last years biggest sellers and I can bet that less than 1% of the people who bought them for themselves and not as gifts were 14 or under. Everyone is so demographic obsessed, but yet adults are the biggest consumer market these days (and even stuff like High School Musical and Hannah Montana is shit they're buying for their kids) but radio completely misses that mark. It's the 20-50 year olds who grew up with buying music who are still buying albums, but radio misses the boat completely and tries to cater to 13 year olds.

u nailed it perfectly lol! I would sooo love to get at least back to the 90s, well mainly the early to mid 90s, when that mentality was given at least some respect by record companies and programmers! Back then, you had the king of all Adult Contemporary radio, Michael Bolton all over the radio. Not saying he was the bombdigitty, but the guy from like '89-'95 was HUGE, and all over the place/radio. Like a modern day Barry Manilow. Id LOVE to see mainstream radio touch a singer like that now lol. He wasnt that greatest looking, metro 17 year old pretty boy. but had a decent voice, & at least was on the radio and charts, and was the furthest thing from hip hip as u could get lol. The dude as annoying as he was to many, was better than the hip slop of 2day and constantly stacking up hit after top 10 hit !

[franxisco66]

^ Not really. Have you heard last Paula Cole album? . It is superb. Not because it is not selling it means she is finished or something.

Regarding Amy, she is being played on radios almost everywhere but not so much in the States, why? Well, I dont know. Maybe she is not 'christian' enough or who knows. She may be over-hyped, but her album is the best of last year, very few doubt about it, and definetely miles better than Rhianna or other US-radio friendly artists. We all know radio in the US ic controlled by a few. I will not get tired of commenting on the Dixie Chicks incident as it is a clear example of how radio works. No matter if you request a song, if they dont want to play it, they wont.

However, I dont think that is the reason for low sales, obviously illegal dowloading is to blame. Maybe CDs should not be so overpriced.

[fak]

It would have to be a combination of different factors but until new music is not promoted then it wont sell. If Kylie got more airplay im sure her album sales would be considerably better than it has been so far. This would also apply to a lot more artists not just Kylie who i am using as an example. Promtion does help an album as it reminds us what is out there. Look how "Blackout" rose up the charts whenever Britney released a single.

Radio needs to take more risks. Its OK to play dance, indie, pop, brit-pop, overseas artists and when they do play them they do sell!

Maybe the music industry needs a hot new boy band or a new britney to liven the place up a little? Theres not much that caters fot that audience anymore.

[franxisco66]

^ Thank God for that. Not another boyband please

[Guest Bad Robot]

Well, I have to say, clearly constantly complaining about radio will definitely make a difference.

If we didn't have the white noise of a never-ending stream of whiners, think how much WORSE it would be! You'd probably be sent to prison for listening to dance music!

Why not actually do something proactive? Go out and buy the music you like and want to support. The almighty dollar is your most powerful weapon.

[erotica blu]

Well, I have to say, clearly constantly complaining about radio will definitely make a difference.

If we didn't have the white noise of a never-ending stream of whiners, think how much WORSE it would be! You'd probably be sent to prison for listening to dance music!

Why not actually do something proactive? Go out and buy the music you like and want to support. The almighty dollar is your most powerful weapon.

[Guest nothingfails0603]

Well, I have to say, clearly constantly complaining about radio will definitely make a difference.

If we didn't have the white noise of a never-ending stream of whiners, think how much WORSE it would be! You'd probably be sent to prison for listening to dance music!

Why not actually do something proactive? Go out and buy the music you like and want to support. The almighty dollar is your most powerful weapon.

seriously, WHAT THE FUCK DO YOU THINK WE'RE DOING? Do you think we're talking about how great Portishead, Ladytron and Goldfrapp are but buying Lil Wayne instead? Seriously, stop the fucking "go out and buy the music you like", because you're preaching to the choir because that is what we're doing. You think we're buying Lil Wayne when complaining about him getting airplay while good music isn't? Come on man, get real!!!!

What do you fucking expect me to do? Be a Mariah fan and buy ten copies of the latest from Cyndi or Alanis or something? I bought one copy, what more do you want?

[Guest Topaz Scorpio]

seriously, WHAT THE FUCK DO YOU THINK WE'RE DOING? Do you think we're talking about how great Portishead, Ladytron and Goldfrapp are but buying Lil Wayne instead? Seriously, stop the fucking "go out and buy the music you like", because you're preaching to the choir because that is what we're doing. You think we're buying Lil Wayne when complaining about him getting airplay while good music isn't? Come on man, get real!!!!

What do you fucking expect me to do? Be a Mariah fan and buy ten copies of the latest from Cyndi or Alanis or something? I bought one copy, what more do you want?

Exactly. Purchasing the music that you like has never been an issue, and that is irrelevant to radio airplay as clearly exemplified by Britney, who has always been a big album seller (prior to Blackout) and yet with her first four albums only scored 4 top 10 hits.

The way to respond to radio not playing what you like is to TURN IT OFF. And that's what many of us having been doing, FOR YEARS. And yet the shit music continues.

I mean, I think a good lot of people on this board have pretty good taste in music and yet how often are you seeing people here singing the praises of the crap that clogs up the top of the charts?

[Guest Bad Robot]

I just want people to fucking shut up about radio. Stop listening to it. Stop complaining. No one has had anything new to say in the past 5 years.

[whyme?]

I blame sites like Itunes for collapsing CD sales. Sales were not this low back in 2000-2004 when illegal downloading was going on. But starting 2005, CD sales really starting plummiting while single track sales blew up.

[moe]

seriously, WHAT THE FUCK DO YOU THINK WE'RE DOING? Do you think we're talking about how great Portishead, Ladytron and Goldfrapp are but buying Lil Wayne instead? Seriously, stop the fucking "go out and buy the music you like", because you're preaching to the choir because that is what we're doing. You think we're buying Lil Wayne when complaining about him getting airplay while good music isn't? Come on man, get real!!!!

What do you fucking expect me to do? Be a Mariah fan and buy ten copies of the latest from Cyndi or Alanis or something? I bought one copy, what more do you want?

Wow you finally said something I agree with!!!

Makes perfect sense.

[franxisco66]

Vow...there is a lot of rage and anger in here.

I also agree with you NothingFails. RnB do not sell most albums and still they monopolise the radio stations. I wonder how much they would sell if they didnt have radio support......

How many rock or country acts have reached number 1 (especially prior to itunes)? Still some of them sell quite a bit.

It is funny cause a straight friend of mine came from holidays in the States and said that he had to go to gay clubs/bars to listen to good music, that most straight places were playing r n b/rap

[Guest nothingfails0603]

I just want people to fucking shut up about radio. Stop listening to it. Stop complaining. No one has had anything new to say in the past 5 years.

yes, but WE'RE TURNING OFF THE RADIO AND BUYING THE ARTISTS WE LIKE. But yet radio still keeps forcing certain artists down America's throat even when other artists are selling more, but aren't seen as marketable to gullable 12 year olds who will be more likely to drink Pepsi if Lil Jon does.

[Joey]

one man's trash is another man's treasure... Lil' Wayne's album is brilliant IMO and Winehouse can eat a dick IMO

radio is always going to cater to the masses and make stars out of people who may or may not deserve it but that's it's basic function.... PROMOTION

[seanster]

credit crunch don't help things either