music cd sales

Are people still buying CDs?

If you’re a musician about to release an album, I’m sure you’re wondering if you really should still make CDs when fewer and fewer people are buying CDs.

For the first time in history, global revenue from music downloads and subscriptions has overtaken sales of physical formats.

Digital revenue grew nearly 7 percent to $6.85 billion, while physical sales — of which CDs make up the vast majority — fell 8 percent to $6.82 billion. [via]

According to MBW analysis, the overall UK albums sales market – that’s real album sales, not counting streaming/track equivalent calculations – fell 5.25% in H1 2015 (38.1m down to 36.1m). Put all that together and the pure album sales volumes in the first half of this year look like this: UK analysis music album sales

This chart alone holds the answer: People are still buying CDs in 2015 and in years to come.  Our theories on why the CD is still an unbeatable medium even if Apple is not getting rid of CD players is as follows:

#1. Physical format is proof of fandom

If you really love a musician, you want to be known as a hardcore fan. That’s the reason why merch are big hits. In this note, CDs are definitely more hardcore than music files no matter how modern and footprint-conscious we are.

#2. CDs make us nostalgic

A big chunk of concert goers and music lovers have come from an era where CDs were the predominant medium. That means, they’re used to buying CDs and they probably have a big CD collection in their living room.

#3. We love opening packages.

It’s nice to see an mp3 file but it’s much nicer to remove the cling wrap from the CD, smell the booklet, leaf through the pages, and touch the CD.

#4. It’s something you can be proud of giving to a friend.

It’s your best friend’s birthday and you know he’s crazy about a certain band. What do you give him? a.) download codes b.) limited edition box set CD c.) signed CD and t-shirt. It’s a toss between b and c, right? Never a.

#5. Hard formats increase value through time.

You can’t sell the 200th download of Taylor Swift’s album on ebay 50 years from now. Or maybe you can but it won’t be as expensive as vinyl or CDs.

 

SO WHAT CAN MUSICIANS LEARN FROM THIS?

#1. The CD will still be alive  in the next decade

The CD sales is declining but it’s still the number one medium bought by music fans. The transition from CDs to USB/downloads will take at least a decade more.

#2. Don’t stop making CDs

Sell downloads but you should always have CDs handy during gigs. People still look for them.

 #3. Come up with creative ways to sell your CDs

Now that people can easily access your music through streaming or file sharing, you need to double your efforts to make your CDs more attractive. You can have a really clever CD packaging or you can bundle it with other items (shirts, stickers, etc) to make your fans feel that they’re getting more back for their buck.

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James Hill is a veteran of the music industry. He first worked at Warner Reprise Records then later joined Interscope/ Geffen Records where he managed producers and songwriters and got his first platinum record for Keyshia Cole’s The Way It Is. He is now helping indie artists with branding and manufacturing through his company Unified Manufacturing, a CD/DVD/vinyl and merch company in LA.

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One Reply to “Are people still buying CDs?

  1. You missed the best reason…

    CD tracks are higher quality than MP3s. An MP3 is a compressed format which uses lossy compression it may be 1/10 of the size of a lossless format like WAV which makes it ideal for portable devices with little storage space, but when you want good sound quality for your high end home system you are going to notice the difference.

    Frankly I don’t buy MP3s at all. I don’t buy vinyl either. MP3s are the lowest quality format and, while vinyl is technically the highest the WAV rips I get off my CDs are ideal for me. They are digital so I can do more with them than vinyl and the quality of the sound is actually not any different from WAV files. Yes the vinyl being an analogue format should contain literally everything, but our ears can only hear so much and WAV files already exceed the sample rate and frequency ranges we can perceive.

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