Music Fans Download $1 Singles; Shy Away From $18 Albums


Music fans are sending record companies a message in 2005 – $1 downloads are more appealing than $18 CDs. So far, albums sales are down 7% this year compared to last. Unless there is a second half savior, the record industry will see a sales decline for the fourth time in five years (2004 was the only year record sales increased from the previous years. Thus far, 282.6 million albums have been sold compared to 303 million this time last year.

Meanwhile, digital downloads are skyrocketing. More than 158 million tracks have been sold this year compared to 55 million in the first half of 2004. Apple's iTunes Music Store continues it's push to a half billion downloads since the stores debut in 2003. But everyone agrees $1 downloads can't offset the losses of $18 CDs.

And in the face of the news, many major artists continue to balk at a la carte single downloads citing lost revenue. Madonna, Radiohead and Linkin Park are just some of the examples of those opposed to selling their music on a per track basis. Also concerned are artists who write their own music as royalties are reduced to mere pennies per download.

We are indeed reaching a critical point in the music industry. Consumers have been given the choice of downloading only the songs they like for a buck apiece instead of squandering $20 on an album containing little more than a few hits, lots of filler and the occasional bonus material. And its obvious that music fans are jumping on the a la carte bandwagon. Therefore, recording artists and record companies must face the challenge of reinventing themselves for this new model of purchasing.

The iPod and satellite radio have brought the popularity of the jukebox back. The average consumer - and I stress average - would rather hear a mix of music from various artists instead of sifting through multitudes of throwaway tracks. While there is still an argument for the merits of a "full album as a body of work," recording artists must understand they can't have their cake and eat it, too. Either you accept the new model and take what money you can from it or you continue to watch royalties wither in the pre-internet traditional model.

Finally, with that said, I believe their is now an even bigger burden on music consumers to support musicians like they never have before. Fans should continue to turn to legitimate downloading and eschew peer to peer networks. Moreover, artists are relying more and more on alternative sources of income, including ticket sales and merchandise. I'm not saying everyone needs to run out and buy Rolling Stones shoelaces, but fans need to realize the importance of these revenue streams as traditional record sales continue to tank.

Posted: Wed - July 6, 2005 at 07:59 PM      

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