CD Down, Digital Music Up
This might be the least surprising news of the day:
U.S. sales of digital music albums grew by 60 percent in the first six months of 2007 but failed to offset the rapid sales decline of compact discs, according to data from Nielsen SoundScan.
Total sales of albums were down by 15 percent for both digital and CDs, with CDs alone falling 19.3 percent to 205.7 million units. Meanwhile, digital album sales jumped about 60 percent to 23.5 million units.
The only thing that surprises me about these numbers is that there are a hell of a lot of people out there buying CDs.
It is nice to see, though, that people are still buying full-length albums and not just single songs.
All of this makes Universal’s decision not to extend its contract with Apple look foolish. Where exactly are they planning to offload their product to if iTunes has 70% of the market? But then, Apple needs Universal just as much as Universal needs Apple.
Oh well, if it all goes down the drain, we still have the Bay of the Pirates to keep us entertained.