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CD Sales Down Downloads Up
Posted by Tom Barger on July 7, 2005 at 3:49 PM   (printer friendly)

http://www.variety.com/index.asp?layout=print_story&articleid=VR1117925533&categoryid=16

CD sales down, downloads up

Only seven '05 releases have become million sellers

By PHIL GALLO


Sales of recorded music are down almost 7% from last year as the calendar hits the halfway mark. But if the music industry is looking for a silver lining in that rain cloud, they'll find it in the digital arena, where paid downloads are up by 104 million units.

For the first six months of 2005, Nielsen SoundScan reports that 282.6 million units have been sold, compared with 303 million a year ago. Digital downloads, however, have topped 158.7 million, up from 54.7 million a year earlier.

Universal Music Group is the leader in market share at 35.7%, followed by Sony BMG (28.3%), Warner Music Group (14.7%) and EMI (9.2%).

The year has seen only seven '05 releases become million sellers: 50 Cent's "The Massacre," at 4 million; Mariah Carey's "Emancipation of Mimi," 2.3 million; the Game's "The Documentary," 2.1 million; Coldplay's "X&Y," 1.4 million; Keith Urban's "Be Here," 1.3 million; Jack Johnson's "In Between Dreams," 1.2 million; and System of a Down's "Mesmerize," 1 million.

First-half releases that should hit seven digits by year's end include discs by Rob Thomas, Black Eyed Peas, Toby Keith, Mike Jones, Dave Matthews Band, 3 Doors Down and Jesse McCartney.

A year ago, sales at the midway point were up 7% from 2003.

Last week's sales, led by 245,000 copies sold of George Strait's "Somewhere Down in Texas" (MCA Nashville), were down 2.7% from the same week last year.

Strait bumped Coldplay's "X&Y" (Capitol), which fell to No. 3 after three weeks in the pole position. "X&Y" sold 140,000.

Rap act Ying Yang Twins saw their TVT disc "United State of Atlanta" sell 201,000 copies in its debut sesh. D-Roc and Kaine had never had a sales week top 75,000 previously.

"I'm a Hustla," by Cassidy, the rapper who recently turned himself in to Philadelphia police in connection with a shooting, opened at No. 5 with his soph Full Surface/J Records release selling 92,000.

Five- and six-year-old recordings from soul singer Anthony Hamilton, released by Rhino/Atlantic under the title "Soulife," opened at No. 12, selling 53,000 copies. Columbia's soul thrush Vivian Green saw her second disc, "Vivian," sell 46,000 copies and open at No. 18.

In other debuts, Island rock band CKY's "Answer Can Be Found" sold 28,000 copies to open at No. 35; Razor & Tie's collection of 30 slow jams, "Slow Motion," sold 26,000 (No. 37); the Jive debut from R&B singer Raheem DeVaughn, "Love Experience," sold 22,000 (No. 46); and former D-12 rapper Bizarre sold 21,000 copies of his Sanctuary disc "Hannicap Circus" (No. 48).

Traditionally, the week after the Fourth of July is a no man's land in music retail. Last year's top debut, for example, was Angie Stone's "Stone Love" at 53,000 units sold. This year, however, it appears R. Kelly's "TP.3 Reloaded" (Jive), released Tuesday, is looking at sales of more than a half-million.


Read the full article at:
http://www.variety.com/story.asp?l=story&a=VR1117925533&c=16


User Comments (These do not necessarily reflect the beliefs of this site)

gdZiemann  
Date: July 7, 2005 @ 3:58 PM
"Sales of recorded music are down almost 7% from last year as the calendar hits the halfway mark."

But shipments are up 10%!!!

/sarcasm -- I haven't seen the RIAA's spin on this yet. It probably won't be out until September because addition is really hard for them.

INeedAlover  
Date: July 7, 2005 @ 4:47 PM
RIAA fuzzy math strikes again.

Emeraude  
Date: July 7, 2005 @ 5:45 PM
My God, why would anyone want to buy that crap anyway? I continues to boggle my mind...
The RIAA has to have many good laughs at all the suckers out here. Glad I'm not one of them!

TotallyFrust...  
Date: July 7, 2005 @ 6:44 PM
At first I thought age was the reason non of the "Big Selers" sounded familiar.

Then I realized it was because I did not go near enough to any of this crap to get familiar with the names ;-)

gdZiemann  
Date: July 7, 2005 @ 7:01 PM
"Platinum records a thing of the past!"

If you want a "platinum" record, just get a can of silver spray paint. That's what the RIAA does.

ShadowMom  
Date: July 7, 2005 @ 8:18 PM
Yeah, but George, don't they actually charge the artist for those? You want to dry up yet another revenue stream for the poor starving record companies?

gdZiemann  
Date: July 7, 2005 @ 8:57 PM
I believe the individual record companies pay the RIAA for them. So this would actually only deprive the lobbying organization of income. They're non-profit anyway, so they'll just have to get their operating funds from all the lawsuits instead.

ShadowMom  
Date: July 8, 2005 @ 12:38 AM
Oh, well...in that case. I was a little worried there for a while that the fat cats might start to lose their gravy train a little......

INeedAlover  
Date: July 8, 2005 @ 9:27 AM
Then the individual record company puts the charge against the artist's advance.

awehr  
Date: July 8, 2005 @ 5:13 PM
It's come to my attention that putting sales growth figures in terms of annual percentages in this context is misleading.

if sales decline 10% one year, and then 11% the next, the net loss for that second year is actually the same as the first (the 11% is a percentage of the remaining 90% revenues left after the 10%drop).

The percentages are conveying a falsely pessimistic view of the situation.

considering the reports of some 35-odd % drops in sales from '99 to '04, i would say the 7% drop is far less in terms of the original point (whose loss theyre bemoaning).... more like 3.5-4%

awehr  
Date: July 8, 2005 @ 5:15 PM
in other words...

if the same amount of real revenue is lost each year... it will with each year be a greater percent of that year's revenue.

the opposite of diminishing marginal returns.. expanding marginal losses.

gdZiemann  
Date: July 9, 2005 @ 12:36 AM
Alex, while you're basically right, they only ever compare to the previous year.

I don't care how you add it up, sales are still down.

CherishTruth  
Date: July 9, 2005 @ 11:09 AM

"I don't care how you add it up, sales are still down."

If so, we can expect the RIAA to keep putting the main blame on file-sharing 'piracy'.



JAFO-555  
Date: July 10, 2005 @ 8:31 AM
What else do they have? Nothing. No way they'd admit their business model no longer works in an electronic age. Or their product isn't worth anywhere near what they charge for it.

I just wish everybody would stop using their product completely for a few months, and really put their sales in the toilet. I don't see that happening, though.

Things could go on like this forever.

JDonahue  
Date: July 21, 2005 @ 11:12 PM
The CD Sales will sharply fall in the second half of this year, especially CDs bearing Sony BMG and EMI.

While the Recording Industry may blame that on more massive piracy, we are going to blame that drop in sales on Copy Protection.

These new copy protected CDs will be packed by the poor 48kbps WMA protected with DRM that has lousy quality and only copied with a limited quality of times. What's worse, Universial is testing new Play20 Copy protected CDs that requires a consumer to register the CD to activate and once activated, a person can playback each track 20 times, and than the CD dies. Universial said: "Giving the CD to a friend is stealing our work. Only the purchaser who activates the CD may play this a limited amount of times, and you need a PC in order to activate the CD to play in DRM protected stereos or in that PC the CD was activated on." How nice of them. They are using DMCA in every effort to shackle the music.