From Vintage Vinyl News:
The National Association of Recording Merchandisers (NARM) has released a report in association with Nielsen SoundScan on the current state of the recording industry.
Highlights from the report:
- 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%.
- In 2008, the biggest percentage jump in sales was for vinyl albums, which were up 89% over 2007. The biggest drop was in current CD albums (compared to catalog) which was down 23%.
- Since 2004, CD sales are down 45% while digital sales are up 490% and video game sales up 115%.
- Between 2006 and 2008, rap music had the biggest drop in album sales, dropping 44% with country down 36% and R&B down 34%. On the other end of the scale, rock and hard rock are only down 18%.
- 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.
- New physical formats are not doing well. Slot Music sales are averaging 1,500 albums per week while digital album cards are only moving 590 albums. Both formats are seriously declining.
- Through the first five months of this year, rock and alternative vinyl album sales have led the way, growing between 60% and 70% from last year. The real genre gains, percentage wise, has been in country and gospel where sales are up 200% from a year ago.
There is a ton more of interesting statistics over in the NARM presentation including the impact of TV on music sales and statistics on big sellers.