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Downloads Sell More than CDs for Atlantic
28-Nov-2008
Written by: Jessica McCumber
Reports say that 51 percent of the label's sales come from the Internet.
For those of us that love the feel of clutching that newly bought CD in our hands as we leave the store in glee, it would seem that we are ever so slightly outnumbered.
Ballerstatus.com is reporting what many have been anticipating: the day that sales from digital downloads surpass those of CDs.
According to reports, 51 percent of domestic music sales for Atlantic Records comes from album and MP3 sales via Internet sources such as iTunes. Oh yeah, and they're not doing too bad with ringtones either.
For Atlantic Chairman and Chief Executive Craig Kallman, it’s a simple comparison to basketball. "We're like a college basketball team on an 18-2 run," Kallman told the New York Times.
The only question seems to be: Will the increase of digital sales be fast enough to revive a music industry highly suffering from a lack of sales?
According to experts, the answer is no.
Going from retail to digital is like “trading analog dollars for digital pennies,” explains NBC Universal CEO Jeff Zucker.
To give an idea as to how far sales have dropped, reportedly eight years ago, in 2000, music sales topped out at $14.6 billion. This year, sales are expected to be $10.1 billion with a projection that sales will drop even further to $9.2 billion by 2013.
Yikes! No wonder the industry is milking ticket sales and merchandising for all it’s worth.
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