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Billboard tweaks album sales chart to include streams, digital track sales
Until now, the Billboard 200 chart has been ranked based on albums sales, but that's about to change. On November 30th, that list will expand its criteria to include sales of a record's individual tracks and streaming plays for the chart that'll post on December 4th. Ten tracks sold will equal one album, while 1,500 spins via the likes of Spotify, Rdio or Beats Music from the same title will count as one sale, too. "Now we have the ability to look at that engagement and gauge the popularity of an album over time," Billboard's director of charts Silvio Pietroluongo told The New York Times. As you might expect, pop stars stand to benefit most.
Shocker: Pandora's study finds Pandora to be good for music sales
In a study it conducted recently, Pandora found that its internet-based radio is actually a good thing for the industry. Not like it would say otherwise, we'd imagine, but Pandora states that the tunes it provides access to are spreading a "positive effect" on sales for music labels, both major and independent. "Now, via this study, we have clear proof of the 'Pandora Effect,' and its positive contribution to the music economy beyond just our royalty payments as the highest paying form of radio," Pandora's Vice President of Business Affairs, Chris Harrison, told Billboard. The study comes hot on the heels of the back-and-forth battle of words between Spotify and Taylor Swift, which began earlier this month when the artist pulled her entire catalog from the music-streaming service.
Digital music finally outsells physical media, books look on in alarm
That sharp sucking of air you heard at the end of 2010, well, that was the record industry wincing as sales of CDs continued to tumble while digital media sales remained flat. The relieved exhale that you just heard echoing through the atmosphere? That was the collective sigh of executives who just picked up the latest Nielsen report indicating that digital music sales are on the rise again and, for the first time ever, have finally surpassed physical media. Sales as a whole were up, but while CDs were down 5.7 percent, digital track sales were up 8.4 percent and digital albums a stunning 19.5 percent (perhaps most interestingly, though, vinyl was up over 36 percent). CDs still outsell virtual albums by a factor of two, but it's clear the trend toward binary media is back on track. It may be a narrow victory but, with 50.3 percent of the market, audio files are new king of the hill. Check out the full report at the source.
Nielsen: growth of digital music sales flat in 2010
It's a bit early for the big music companies to start panicking, but it looks like the heyday of double-digit growth in digital music sales may now be behind us. That's according to market research firm Nielsen, at least, which found that sales in the US fell flat in 2010 after a 13 percent increase from 2008 to 2009, and a whopping 28 percent jump from 2007 to 2008. Nielsen is quick to point out, however, that it thinks this is a "plateau," and that it "doesn't mean that this digital consumption is going to drop significantly." It also still seems to be a different story outside of the US, with Nielsen reporting that digital music sales were up 7 percent in Britain, 13 percent in Germany and 19 percent in France.
iTunes share of the US music market swells to 26.7%
Apple's iTunes music service has strengthened its lead in the US music market, growing to a whopping 26.7% of all music sold in the States, up from 21% a few years ago and 12% in 2007. That's pretty phenomenal growth, buoyed almost certainly by the rising share of digital music versus brick and mortar stores. Digital purchases make up 35.5% of music bought here, also up from 31% the last time Billboard released stats. So where are all of these music purchases coming from? Best Buy and Walmart, apparently -- both retail outlets saw their shares drop by a few percentage points recently. And of course these are all percentages. I'd bet that lower music sales overall combined with growing sales on iTunes is helping to grow Apple's share quite a bit. At any rate, while hardware sales are getting the press, let's not forget that iTunes is still a big earner for Apple. [via Macsimum News]
Apple sells 25% of music in the US, none of which is AC/DC
According to the number crunchers at NPD Group, the trend that came to a head last year when Apple beat out Wal-Mart for the title of largest Stateside music retailer is continuing apace. That's right -- one in four songs sold in America is sold on iTunes, while Wal-Mart (including CD sales through retail stores, sales through their website, and Wal-Mart Music Downloads) holds the number two position at 14 percent. And number three, if you're morbidly curious, is Best Buy. In addition, 69% of all digital music sold in the US comes from the iTunes store, with Amazon ranking second at 8 percent. When talking formats, the CD remains the most popular at 65 percent, but as some dude named Russ Crupnick (NPD's vice president of entertainment industry analysis) notes, "with digital music sales growing at 15 to 20 percent, and CDs falling by an equal proportion, digital music sales will nearly equal CD sales by the end of 2010." Which can only be a good thing, if it means that we'll never have to step into a Wal-Mart again. Sales of ringtones and sales to consumers under 13 were not tabulated, which means the data may incorrectly skew away from purchases of The Wiggles' Go Bananas! and that Crazy Frog song. [Via TUAW]
Incredible: Apple responsible for 25% of US music sales
The NPD Group has released amazing numbers this week: Apple is generating one quarter of all US music sales. Equally impressive, but less surprising, is that Apple is also responsible for 69% of all online music sales. Wal-Mart is #2 for US music sales at 14% (that's a combination of both their online and CD sales) and Best Buy is third. Speaking of CDs, the aging format is still the overall top seller in the US and Wal-Mart is the top CD distributor. However, NPD expects that Apple's sales will equal that of CDs by 2010. I know it's impossible to say what I'm about to without sounding like a grumpy old man, but here it comes anyway. For me, the tremendous thing isn't that Apple has commandeered the market so handily, it is the rate at which the distribution model has evolved. I'm only 38 years old, but as a kid I had a box of records. By the time I was in junior high school I was buying cassettes and in college I bought CDs. Today, I can't remember the exact last time I bought music in a format I could physically hold in my hands. I'm glad the big wigs in the music industry are starting to get it. Now if only the TV execs would follow suit.
