Album sales plunge in '07 as digital growth slows
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If only Christmas came a few times a year for the fast-fading U.S. music industry.
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Sales at Apple's online music shop  iTunes Music Store fell off a cliff in the first six months of  2006, according to a recent survey.
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New music industry data show the number of U.S. albums sold last year tumbled 9.5 percent from 2006, even as the number of digital tracks sold soared by 45 percent.
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Sales of physical and digital albums tumbled to 500.5 million units, as the music industry was pillaged by piracy and competition from other forms of entertainment like videogames.
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TechWeb - LAS VEGAS - U.S. video game industry sales growth is expected to slow in 2008 as accelerated demand for software is tempered by a decline in hardware revenue, the Consumer Electronics Association said Saturday.
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After painfully slow sales last month, the music industry finally has a hit: âSleep Through the Staticâ (Brushfire), by Jack Johnson, above, sold 375,000 copies last week â more than six times the sales of the top album the week before â to reach No. 1 on the Billboard chart. It set a record for the most digital sales in a single week, with 139,000 copies, or 37 percent of its total, according to Nielsen SoundScan. In a week busy with high-profile releases, Sheryl Crowâs âDetoursâ (A&M) opened at No. 2 with 92,000 sales; Lenny Kravitz moved 73,000 copies of âIt Is Time for a Love Revolutionâ (Virgin) to bow at No. 4; and K. D. Lang is No. 8 with her new âWatershedâ (Nonesuch), selling 41,000. Last weekâs No. 1, Alicia Keysâs âAs I Amâ (J), dropped two spots with 80,000. Any sales bumps after last Sundayâs Grammy Awards would be reflected in next weekâs chart.
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After 2006 -- a year when virtually no  one managed to launch a digital music service in competition  with Apple's dominant iTunes -- 2007 was a refreshing change of  pace.
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Pundits have noted that Apple showed only 5% iPod unit growth over last year's Q1, but the real comparison has to include the iPhone, which replaces any potential iPod sale. Even then, growth is slowing.
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So far 2008 has not been a good year for music sales. This week Alicia Keys, below, stays atop the Billboard chart with âAs I Amâ (J), but the number of copies that CD sold is barely above the historic low for a No. 1 album. Nielsen SoundScan reported that 61,000 copies of the album sold last week; the least number of weekly sales for No. 1 is 60,000, set by the âDreamgirlsâ soundtrack a year ago. (The numbers are rounded.) This week the âJunoâ soundtrack (Rhino) is at No. 2 with 58,000, Mary J. Bligeâs âGrowing Painsâ (Geffen) is No. 3 with 52,000, and Radioheadâs âIn Rainbowsâ (ATO) is next with 46,000. The R&B singer Raheem DeVaughn opens at No. 5 with 45,000 sales of âLove Behind the Melodyâ (J) and John Legendâs new âLive From Philadelphia,â available only through Target, reached No. 7 with 33,000.
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A swing to growth in U.S. album sales  and surging consumption of music on DVD helped slow the decline  in first-half global sales of recorded music, the trade body  for the world's largest record companies said Thursday.
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Warner Music sees its latest quarterly profits fall 74% following weaker album sales than a year earlier.
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Booming online music sales will help the record industry recover - but not until 2011 warns a report.
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CANNES, France  - Away from the headlines of job losses, grumbling artists and falling global sales, the music industry is trying new business models to boost digital sales and offset the decline in CDs.
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Physical CD sales continue to drop, but sales of digital music are surging, according to data from Nielsen SoundScan. Digital music sales increased by 49 percent to 417 million.
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NEW YORK (Billboard) - Just when it seemed erosion of music sales during the holiday season couldn't get worse, December snowstorms compounded the retail industry's misery.
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The Number Two online music retailer reports record downloads to close out 2007.
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LOS ANGELES (Billboard) - The holiday mood at independent  music retailers is one of cautious optimism, despite Nielsen  SoundScan numbers showing that overall sales at U.S. indie  merchants were down 7.1% from last year as of Nov. 28.