CD Sales, Shipments Down in 2005

[downhill]

It's been an era of change for the music industry. After achieving a peak year in terms of total units shipped and dollar value in 1999, these values have been on the steady decline. Perhaps most dramatic is the continued and accelerated decrease in the public's interest in the Compact Disc.

In 2000, the total number of CD units shipped was 942.5 million, with a total value of just over 13.2 billion dollars. This represented the CD format's peak year, although combined sales of all formats were already in decline.

In sales statistics just released by the RIAA, 2005 faired little better with 8% drop in CD units shipped. Accompanying this decline was an 8.1% drop in dollar value from 2004. In all, the total number of CD units shipped fell from 767.0 million in 2004 to 705.4 million in 2005.

Dollar value also fell substantially from 11.4 billion to 10.5 billion. This decline represents the greatest drop since 2002, when shipped units and dollar value fell by 8.9% and 6.7% respectively.

So what's changed besides P2P?

The article goes on to say.....

Since digital music's introduction, growth for the music industry has been impressive. Out of all available formats, including DVD Audio, digital downloads have clearly led the charge in the new millennium. The total number of units shipped (downloaded) totaled 139.4 million in 2004, and then skyrocketed to 366.9 million in 2005. Dollar value nearly mimicked this trend, by increasing from 138.0 million in 2004 to 363.3 million in 2005 - a 163.3% increase.

With a near limitless demand for MP3 players - rather than bulky portable CD players - it’s becoming apparent that convenience is driving the music industry's recovery. Interest in digital music has become so strong that it continues to reverse the industry's fortunes. Although every physical format continues to suffer with lackluster performance, the digital format generated enough interest to increase total units shipped (CDs, digital, etc) to over 1.3 billion 2005 - a record high. Total dollar value continued to decline however, but only by 0.6% from 2004.

I guess it's a sign of the times, but if I'm going to spend hard earned money, I at least want something that for the most part is tangible. I can make my own mp3's and with that, no proprietary formats.


http://www.slyck.com/news.php?story=1143

[ghettoside]

I guess it's a sign of the times, but if I'm going to spend hard earned money, I at least want something that for the most part is tangible. I can make my own mp3's and with that, no proprietary formats.

[minir]

Two things they always fail to mention downhill.

1...Lack of Great Bands recording worthwhile music to buy.

2...Vinyl is still going strong worldwide.

The first imho being the biggest reason for the CD dilemma. If it wasn't for re-issues of the past it would really be sad.


Also the Industry continues to screw with other Formats the public simply do not need or want imho. With the evolving Tech the CD is getting closer everyday to Vinyl (the gold standard with which to judge)sound.

They got away with 8 Track, Cassette, etc and figure its something they can continue generating income from. Not so imho. CD is the leader and will remain so when it comes to quality reproduction. It is the medium most people have plenty of and are unwilling to re-invest all over again in new formats.

Just my humble opinion for what its worth.

--

regards

minir

[Lefty]

Yes Larry, along with way too many remakes and lack of much originality. Groups like Nickleback making different songs with the same words rearranged. Its pitiful I tell you.

[minir]

Yes Larry, along with way too many remakes and lack of much originality. Groups like Nickleback making different songs with the same words rearranged. Its pitiful I tell you.

--

I keep mining the Oldies Lefty. Each time i look there's another Band i have nothing on, so i constantly search for those. The New Groups for the most part leave me cold.

Its take off most of your clothes, dance, have plenty of backup singers and your a hit. It was tough enough to swallow Madonna, now Jessica Simpson. Lord help us all

--

regards

Larry

[downhill]

Maybe it's just me, but I find new stuff all the time that I find enjoyable.

Bird York's "Wicked Little High". IMHO, not a bad cut on the album.

Porcupine Tree's last two abums are killer.

True there are some albums out there that probably should never have been recorded but hey...there always have been.

I think a lot of the problem is how music is marketed. With the main venu for music getting exposed is radio, it (my opinion) manipulates the masses with "who" they want to market.

Of course this isn't the rule. With the advent of Sirus and XM radio, it explores a lot more artists but aren't we still at their mercy on who gets played?

The biggest exposure for me into new music, comes from the audio forums I visit. Also...I can explore sites such as Amazon. Lots of recommendations by other artists there who recommmend what they are listening to.

One other place to mention of course is the Hoffman forums. This place costs me a lot of money. LOL

[minir]

Hi downhill

Yes there are nuggets out there that are worth panning for and i do. However i depend like you on forums and recommendations in Reviews of Stereo Equipment and some music review sites.

--

I think a lot of the problem is how music is marketed. With the main venu for music getting exposed is radio, it (my opinion) manipulates the masses with "who" they want to market.

Radio at one time was worth listening too, but sadly no longer with everything compressed to the point of being lifeless and also as you suggest the listener is stuck with the Radio Stations marketing of whomever they see fit. Its all canned now and like going to a Mall anywhere, the same stuff keeps showing up.

The University Stations used to open a window to other selections but they too are drying up unfortunately.

For every New Group i try i would venture to say i buy 10 Oldies that are guaranteed to float my boat. Just not enough Talent coming along imho. Lots of noise, dance & bellies, but little in the way of musicianship imho.

Rock On my Friend

minir

[Brent]

It is the evolution of technology, CDs are old news, time to move to digital means. MP3 players are popular because they are small and can hold way more music than a CD, so you buy one and just buy MP3's, that way you get only the songs you want instead of a whole CD that may only have 2 or 3 songs you like on it. Customization and Portability are two enticing elements with digital music.

We can't live off of CDs forever, technology will progress and people will demand the better of what technology has to offer.

[Humboldt]

What Brent said and the damn cd's cost too much IMO.

[Rivas]

What Brent said and the damn cd's cost too much IMO.

exactly

[downhill]

It is the evolution of technology, CDs are old news, time to move to digital means. MP3 players are popular because they are small and can hold way more music than a CD, so you buy one and just buy MP3's, that way you get only the songs you want instead of a whole CD that may only have 2 or 3 songs you like on it. Customization and Portability are two enticing elements with digital music.

We can't live off of CDs forever, technology will progress and people will demand the better of what technology has to offer.

Your right, as CD's will someday fall by the wayside. That makes those of us with the real deal, holding a goldmine.

I'd also mention that there is still a good percentage of the population that will be buying hirez. I do that now. I don't think that SACD or DVD-A is going to survive though. I think that they'll be replaced when the format wars for blue ray or HD DVD pan out.

That said, minir already stated, that CD's are approaching the sound quality of LP. That's true in a way. It's mostly because the electronics are getting cheaper. A quality DAC that cost a grand 15 years ago is about the quality you can find in a boom box now. The super DAC's nowdays, go for between 700 bucks and a grand and they do sound spectacular compared to most run of the mill DACs you find in an average receiver.



True, a lot of society is turning into a "I want it right now" type of thing.

As I said, I'll buy mine and convert to mp3 or Ogg or MPC or flac, what I feel like listening to. I do that now.

Humboldt, CD's cost too much? Umm...ok. So your going to pay for your songs by the song? How much for a CD's worth if you do that?

With that, you have to make sure everything you have is backed up. The only way I'm going to loose my collection is if I have a fire or theft. In that case, I'm insured. I'm not out anything but reordering everything or....searching for the rare stuff.

Back to the cost of a CD. If you take in inflation, they are probably less than half the cost they were 12 years ago. They are probably less than a quarter the cost that an LP was 35 years ago. My feeling on this is, with the advent of p2p, a huge percentage of the population got cheap and now don't want to pay for their music.

*shrug*

[downhill]

exactly

See above and be ashamed of yourself.

[Humboldt]

Humboldt, CD's cost too much? Umm...ok. So your going to pay for your songs by the song? How much for a CD's worth if you do that?



Back to the cost of a CD. If you take in inflation, they are probably less than half the cost they were 12 years ago. They are probably less than a quarter the cost that an LP was 35 years ago. My feeling on this is, with the advent of p2p, a huge percentage of the population got cheap and now don't want to pay for their music.

*shrug*

Try looking at it in terms of I, Humboldt, don't make enough money to be able to buy music on a regular basis, by the disc or by the song. Every now and then, sure, but I consider things like my mortage and my animals more important. I still buy almost all my cd's used.

[downhill]

Try looking at it in terms of I, Humboldt, don't make enough money to be able to buy music on a regular basis, by the disc or by the song. Every now and then, sure, but I consider things like my mortage and my animals more important. I still buy almost all my cd's used.

Understood.

I've been there and in reality, I still am.

I've done it like this. When I had money to burn I bought music. When I didn't have money..it was famine. Just like anything else.

[lewis]

The music industry has become the land of the "One Hit Wonder"

Sales are down, sure, whens the last time Garth Brooks, Shania Twain, Rolling Stones, U2, Brittney, Madonna, even Jacko put out a multi-million selling album? Like 10 years ago?

With Mp3's, Xm, p2p, who has to buy an album anymore? The last cd I bought was uhmm... Nickelback, but before that... can't remember.
I've already put all my cds in a box in the back of the closet.

[YARDofSTUF]

It is the evolution of technology, CDs are old news, time to move to digital means.

But the RIAA doesnt want that. From the article you can see that they dont make as much money off the mp3s.

[Sava700]

Its the same with PC games I read that more and more are downloading the games say like EA games you have the EA downloader... well either way it still costs you the same as it does if you purchase it with the box/CD or DVD/manual and everything if you ask me a 30$ game that way should cost about 15$ or less if you download it cause look at all the money saved from packaging,moving it from one place to the next to sell, printing the manaul when you can use a .pdf format of it etc... do they think we are stupid?

[Tawcan]

Tool's new CD is coming out in May. Just wait this is going to bring the sales up.

[Brent]

But the RIAA doesnt want that. From the article you can see that they dont make as much money off the mp3s.

I know, the RIAA is holding us back.

[downhill]

I know, the RIAA is holding us back.

Not really. You can get a ton of stuff by download now.

On the other hand, if your not willing to pay for copyrighted material, then yes....the RIAA is not your friend.


_________________

I was looking for a link on what percentage that downloads make now in overall sales. It's really pretty hefty for as new as selling downloaded music is.

I did come up with this....

http://www.abcmoney.co.uk/news/2620062231.htm

Those music industry guys may be on to something with music downloads. The music industry group International Federation of the Phonographic Industry reported (paid subscription required) that online music sales grew at a staggering rate over the past year. During the first half of 2005, legal downloads accounted for US$790 million in sales compared with US$220 million for the first half of 2004. That's an increase of more than 350 percent in download sales, if you're scoring at home.

On the flip side, sales of compact discs continued their slide. CD sales dropped by 3.4 percent in terms of units sold and 6.7 by value. CDs, combined with DVD music videos, accounted for US$12.4 billion in revenues. Music sales in all formats (physical and downloads) totaled US$13.2 billion during the first half of 2005, down from US$13.4 billion the previous years.

Naturally, the IFPI also trumpeted its continued efforts in the fight against file-sharing as part of the reason for the growth, affirming its desire to continue combating "copyright theft."

[minir]

imho there will always be competing formats as all Mfgs want a slice of the Patent Pie.

As to sound quality...Vinyl...Cd.

The rest is simply a dumbing down of the quality for the sake of convenience imho. Apple Ipods and so forth. Will they sell, absolutely, but if you want real sound on a good system they will not appease that need imho.

It took years to develop the quality in miking etc to record Vinyl properly and only now is CD and its attendant equipment reaching that level. CD may well yet surpass the quality of playback that Vinyl now possesses. Its very close as is.

No such promise is there for Ipods etc to my knowledge.

As to CD costs. We here in N.America pay far less than most places and the costs if you shop a bit are well within reason. I do not download music, i purchase it to help support the artists.

--

regards

minir

[YARDofSTUF]

No such promise is there for Ipods etc to my knowledge.

Its all in the format, and there are lossless formats. So If apple wanted to, I believe they could produce something equal to any other sound quality, but the average person wouldnt know the difference so as a business, I guess they say why bother.

As to CD vs Vinyl, I think its more a different sound than a better/worse type deal. Plus with average/common equipment, it would be hard to tell the difference.

[minir]

Hi YARDofSTUF

The Technicalities far exceed my ability to discern, however the quality offered by these new systems do not approach the needs of a revealing in home sound system and it is apparent if listened too on such systems.

Mine is a modest system, but revealing and there are those much more so wherein the music generated starts to reflect the shortcomings of same.

Will they someday overcome these faults, perhaps, but basically they are simply filling a need for portability and downloading that satisfies many in the public.

One only needs to attend a musical evening of un amplified music in a proper venue to appreciate the differences from recorded vs live and they are many.

No matter how well recorded the piano for one is a poor substitute for the real deal. Most accept this for the convenience of having such great works available in their homes, now to a lesser extent in their pockets & ears.

--

regards

minir

[7thkevin]

imho i think slow sales is due to no good artists. i rember buyin cds all the time... most of teh stuff out now is only half as good Imo...