Published On: Mon, Jul 13th, 2015

Digital music spending has overtaken CD and Record Sales for the first time

There is a revolution in the music industry. For the first time Digital music spending has officially overtaken CD and Record sales. In the first quarter of 2012, the Digital music sales were at 55.5% of all sales in that sector. The music industry trade body BPI reported the news. The first 3 months of 2012 saw £155.8m being spent on music in the UK. This represented a 2.7% increase in the year-on-year statistics when compared to the position in 2011. The decline in CD sales was offset by an increase in paid-for subscriptions, downloads and ad-funded services such as Napster, Spotify, eMusic and We7. The sales in those sectors increased by 23.6% and reached the final overall proportion of 55.5%.

The changing methods of accessing music and popular entertainment

Digital music spending

Digital music spending

Does this spell the end of the CD Record deals? Of course the artists will continue to produce studio records but the difference is that they will increasingly have to rely on the internet for marketing their music. The figures indicate that the revenue from physical formats such as Vinyl and CD fell by 15% to end at just £69.3m. By contrast sales of digital albums rose by 22.7% and ended up bringing in £35.9m. This meant that they were outstripping music industry revenue from single track downloads for a second successive quarter.

As for the music industry, this was some good news despite the fact that the weekly UK Album Chart sales fell to their lowest point since 1996.  The total sales by the end of the 20th of May were just under 1.35 million. This represents a fall of 7.5% on the previous week. They are 250,000 lower than a similar point in 2011. Perhaps the fans are changing the ways in which they listen to music and the industry has not yet designed an appropriate response. The last low point on a seven-day sale tally was in the week ending the 22nd of June 1996 when a mere 1,277,279 albums were sold.

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