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article imageBest Buy pulling CDs from their shelves, as albums fade fast

By Markos Papadatos     Feb 6, 2018 in Technology
Best Buy, one of music's biggest merchandisers in the United States, is expected to end the sales of physical albums (CDs) at all of their stores by July 1, 2018.
In an article in Billboard Magazine, it was revealed that Best Buy told its music suppliers that it will pull CDs from its shelves by July 1, 2018. This is primarily due to declining sales, and the spike of streaming users such as Spotify. As a result, the consumers have shifted their music preferences to streaming.
While people are still listening to music, it is obvious that the Internet is the way of the future! This is thanks to such digital retailers as Pandora, Apple Music and Spotify, all of which are top of digital sales.
According to the International Federation of Phonographic Industry, streaming revenues have surged by more than 60% and more than 100 million users have paid streaming subscriptions globally.
In the United States, it was reported that CD sales were down 19 percent from last year. Sources have suggested that CDs generate about $40 million each year for Best Buy. The Billboard article further noted that although Spotify is the biggest streaming provider in the world, with 70 million paid users, it was expected to lose between $118 million and $236 million.
In addition, the International Federation of Phonographic Industry (IFPI) has indicated that streaming revenues have increased over 60 percent, with over 100 million paid users worldwide.
On the plus side, it was disclosed that Best Buy is going to continue to sell vinyl records in their stores due to a previous commitment.
Another major retailer, Target, will only sell its CDs on consignment. With consignment, though, the inventory risk shifts back to the record labels.
Speaking of Target, it has reduced its music in its stores over the years. Once it carried as many as 800 titles, but these days, there are less than 100 titles in most of their stores, unless those titles are from artists such as Adele (25 album) and Taylor Swift (Reputation album).
More about Best buy, Target, Spotify, Streaming
 
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