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Saturday, December 31, 2005
USA Today ran a story about U.S. music album sales. Get this: 2005 album sales were down 7% from the previous year while digital downloads of music doubled! U.S. album sales were down about 7% as 2005 drew to a close, but the budding market for music downloads, which more than doubled over last year, helped narrow the revenue gap. The article goes on to note that this isn’t particularly bad news for recording companies, but “it doesn’t bode well for music retailers.” Combined, album and singles sales fell about 8% over the same time last year. More than 95% of music is sold in CD format. Downloaded tracks from online retailers soared to 332.7 million this year, compared with 134.2 million in 2004, an increase of 148%. Download sales increased by 350% over the prior year. Michael Hyatt predicts, a big enough slice of the book reading public will opt for digital delivery and that will have a significant, disruptive effect on the entire industry. As he sees it, 5-10 percent reduction in sales would wreak havoc. It’s already happening with newspapers and magazines. On the other hand, publishing companies that anticipate this shift and prepare accordingly will prosper.He is spot on when he sees that when technology shifts happen – quality does not matter beyond a certain level - The quality of MP3 files is not as good as the quality of CD tracks. Yet, customers are switching in unprecedented numbers. The trend of having 10,000 songs at your fingertips in a device that can fit in your pocket is intoxicating—at least to millions of people.
Category : Emerging Trends, Disruptive Technologies, Online Strategies |
|Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld