Album Sales Down...

The numbers are coming in. Album music sales dipped by at least 15% in 2007, meanwhile digital music sales rose by over 50%. Is anyone shocked by this news? This trend has been going on for awhile. But what does it really mean?

Casual music consumers no longer have many easy ways of obtaining CDs. The aisles at Best Buy, Wal-Mart, Borders are all pretty thin with overpriced titles usually consisting mostly of hits compilations and top 40 material. Most that are computer savvy in the slightest have embraced downloading tracks. It is easy enough, isn’t it? Millions of consumers have iPods. Why not just download the music while paying bills or surfing the net? Casual consumers have it made. They can simply select their favorite hits of the day and find some of the older classics with the touch of a button or click of the mouse. So, of course digital downloads continue to be on the rise. The primary buyers of downloads are casual music consumers.

For the devoted music fans and collectors, well, things have become much more complicated and dire. The devoted, hardcore fans are not fans of the download for the most part. If they do download anything, it is usually via P2P as a trade. But for the most part, devoted fans are still purchasing physical product, whether it is new factory sealed or used. Vinyl has even made a reappearance as a top format choice among many consumers.

Devoted fans still want physical product. Many are loading up on their purchases in preperation for the moment when the CD is gone and no physical replacement is available. This reality is coming sooner than most think. I know plenty of fellow music collectors that have been in high-volume-purchase mode for the past couple of years preparing for the inevitable day when product is gone.

The one thing that should not be forgotten is the market created by devoted music fans and collectors. This market is filled with individuals that live for music. They support it on all levels and consistently spend a lot of money on product. This market isn’t enough to sustain an entire record industry, but it is a market that needs to be taken care of by the record labels. The labels have lost their stronghold on casual consumers, but the moment the labels completely disassociate themselves from the hardcore fan-base is when their fate is permanently sealed.

Product is part of the music experience. The artwork and liner notes add value. I was jamming to The Byrd’s Legacy Edition of “Sweetheart Of The Rodeo” over the weekend. Not only is it a milestone and legendary album, but the story behind it is such a fascinating and important footnote in music history. The story is told through great liner notes and photos found in the Legacy Edition. This story won’t be found on iTunes if a music fan decides to explore “Sweetheart Of The Rodeo” through a download. iTunes is the modern day cassette tape – a no-frills way of hearing music. So much is lost through downloading.

Now, one could make the argument that all consumers have to do is download the tracks and search for the stories online. Well, that could work, but it isn’t quite the same as owning the music and story in a physical form. Ultimately, that may be the only way of doing it though, because the CD is on the way out. But, will casual consumers even know to look for the story? In many cases, this crucial piece of the picture will sadly go unnoticed.

Album sales will continue to plummet over the next couple of years. The percentage of sales will continue to drop because casual music consumers no longer support the CD as they once did, the prices continue to stay way too high, there are few options of where one can actually purchase CDs, and the quality of music continues to be at a low level. Downloads will continue to be on the rise, as discussed above. Still, there doesn’t seem to be any answers. The future for music sales looks bleak. It is only going to get worse before it improves.