Record sales explained

Record sales or music sales are activities related to selling music recordings (albums, singles, or music videos) through physical record shops or digital music stores.[1] [2] [3] Record sales reached their peak in 1999, when 600 million people spent an average of $64 on records, achieving $40 billion in sales of recorded music.[4] [5] Sales continued declining in the 21st century.[6] [7] The collapse of record sales also made artists rely on touring for most of their income.[8] By 2019, record sales accounted for less than half of global recorded music revenue, overtaken by streaming.[9] Following the inclusion of streaming into record charts in the mid-2010s, record sales are also referred to as traditional sales or pure sales.[10] [11] [12]

Although an accurate worldwide sales figure is hard to determine, it is widely acknowledged that the Beatles have sold more records than any other artist in the history of recorded music.[13] [14] [15] [16] Michael Jackson's 1982 album Thriller remains the best-selling album in history, with an estimated 70 million copies sold worldwide,[17] recognized by the Guinness World Records.[18] "White Christmas" (1942) performed by Bing Crosby is believed to be the best-selling single, with an estimated 50 million copies sold worldwide.[19]

History

Before the existence of recording medium and its player, the music industry earned profit through selling musical compositions on sheet music. The very first sales chart published by Billboard magazine in the United States was the Sheet Music Best Sellers chart.[20] Following the invention of the phonograph by Thomas Edison in 1877,[21] the music industry began hiring singers to record songs made by composers. Due to the length limit of recording media, singles were the only available commercial releases. In 1900, the US record sales is estimated at 3 million copies. The music industry continued its growth, and by 1921 the value of record sales in the US reached $106 million with 140 million records being sold.[22]

Album sales were first reported by Billboard magazine on March 24, 1945.[23] An album was then defined as a box containing a set of singles, such as Glenn Miller by Glenn Miller, as well as Selections from Going My Way and Merry Christmas by Bing Crosby. Technological developments in the early 20th century led to the development of the vinyl LP record as an important medium for recorded music. In 1948, Columbia Records began to bring out 33 rpm twelve-inch extended-play LPs that could play for as long as 52 minutes, or 26 minutes per side. Musical film soundtracks, jazz works, and thematic albums by singers such as Frank Sinatra quickly utilized the new longer format. Billboard launched its first regularly published weekly albums chart, Best Selling Popular Albums, on March 24, 1956.[23]

During the 1950s and into the 1960s, 45 rpm seven-inch single sales were considered the primary market for the recording industry, while albums were a secondary market. The careers of notable rock and roll performers such as Elvis Presley were driven primarily by single sales. Album sales reached its peak in English-language popular music from the mid-1960s to the mid-2000s (known as "album era") in which the album was the dominant form of recorded music expression and consumption.[24] From the early 1980s, the CD became the dominant format for both albums and singles, due to factors such as higher audio quality, durability, ease of use, and longer playing time. In 1986, Dire Straits' Brothers in Arms became the first album in history to sell over one million copies on CD.[25]

In October 2005, "Hollaback Girl" by Gwen Stefani was the first single ever to sell one million digital downloads.[26] Downloads have been in decline since 2013 as consumers have moved away from a purchase/ownership model towards a subscription-based model (streaming). By 2018, total sales were at their lowest point since the 1970s, and continue to fall. In 2020, major UK retailers such as supermarkets started to stop selling music.[27]

Marketing

Aside of paid advertising in print or broadcast media, radio airplay is one of the most important tools to sell records. A research commissioned by one of major label groups stated that "four out of five music purchases can be traced to radio airplay.[28]

In 2007, Record Store Day was inaugurated to bring together fans, artists, and thousands of independent record stores across the world.[29] The 2013 event of Record Store Day was credited with the highest U.S. vinyl sales,[30] and the 2014 edition resulted in independent retailers recording the highest percentage of physical album sales, since the SoundScan system was introduced in 1991.[31]

Merchandise bundles

In 2004, Prince became the first major artist to bundle his album, Musicology, with tour ticket purchases, giving copies of the album to each audience upon entrance to the venue. Those copies were counted as sales for the album on the Billboard 200 chart during its corresponding week of each concert. This strategy led Billboard and Nielsen SoundScan tighten up their policy on how tickets bundled with albums would count for charting purposes.[32]

Travis Scott bundled his 2018 album Astroworld with his 28-piece merchandise line, which contributed to first-week sales exceeding 270,000 traditional units and a number-one debut on the Billboard 200.[33]

RIAA summary by format, in million copies per year.[34]

Financial loss

At times, labels overshipped records to retailers with too high expectations of commercial response. Records not sold to consumers may be returned to the label. In January 2008, media reported that over one million unsold copies of Robbie Williams's album Rudebox were sent to China to be crushed.[35] EMI owner Guy Hands said, "Roughly 85% of what EMI does get to release never makes a profit, in part because of the cash spent signing bands and partly due to ill-made bets on the number of CDs the market requires for particular acts."[36]

In 2011, Amazon sold an estimated 440,000 digital copies of Lady Gaga's Born This Way in its first two days at a price of 99 cents.[37] This promotional campaign caused a loss of over $3 million for the company.[38] In 2014, U2's album Songs of Innocence was released for free on iTunes. Apple's deal with U2 and the band's label, Universal Music, which stands to lose more than a million full-price sales because of the free download offer, guarantees $100 million worth of high-profile marketing for the album.[39]

Second-hand

The sale of second-hand albums and singles continues into the 2020s, with many record stores having a used section, as well as pawn shops such as CeX, Cash Generator, Cash Converters,[40] and the emergence of eBay, MusicMagpie, Alibris and other dedicated websites.[41] [42]

See also

Notes and References

  1. Web site: Music Sales Measurement - Nielsen. nielsen.com. 4 December 2017. https://web.archive.org/web/20140707105041/http://www.nielsen.com/us/en/solutions/measurement/music-sales-measurement.html . 7 July 2014. live.
  2. Web site: Albums decline but digital rises. 8 March 2012. 4 December 2017. BBC. https://web.archive.org/web/20120531230500/https://www.bbc.com/news/technology-16382648. 31 May 2012. live.
  3. News: Record sales for 'cheap' albums. 19 August 2003. BBC News.
  4. Web site: The Cruel Math Behind Why Streaming Will Never Save The Music Industry. Mark. Rogowsky. Forbes. 22 June 2018 . https://web.archive.org/web/20140322023505/https://www.forbes.com/sites/markrogowsky/2014/03/20/out-of-tune-can-the-music-business-find-harmony-to-reverse-its-long-decline/ . 22 March 2014. live.
  5. Web site: The Price of Music – pakman.com. 18 March 2014. pakman.com . 22 June 2018. https://web.archive.org/web/20180622165343/https://pakman.com/the-price-of-music-942cf2dcaa81. 22 June 2018. live.
  6. Web site: Streaming Overtakes Downloads, CDs as Top Music Revenue Driver. Janko. Roettgers. 22 March 2016. Variety. 22 June 2018. https://web.archive.org/web/20160325065934/https://variety.com/2016/digital/news/riaa-streaming-downloads-cd-revenue-2015-1201736441/ . 25 March 2016. live.
  7. Web site: IFPI Global Music Report 2016. ifpi.org. 22 June 2018. https://web.archive.org/web/20160413213421/http://www.ifpi.org/news/IFPI-GLOBAL-MUSIC-REPORT-2016 . 13 April 2016. live.
  8. News: With V.I.P. Pricing, Fans Buy Their Way Closer to the Band. Ben. Sisario. The New York Times. 22 May 2010. 22 June 2018. https://web.archive.org/web/20100525112528/https://www.nytimes.com/2010/05/23/arts/music/23VIP.html. 25 May 2010. live.
  9. News: IFPI issues annual Global Music Report. May 4, 2020. IFPI. Childs-Young . Laura .
  10. Why Charts Matter, and What It Means When Drake Dominates Them. Rolling Stone. Elias. Leight. July 10, 2018. October 29, 2020.
  11. Web site: Gunna's 'Wunna' Album Set for No. 1 Debut. Complex. Joshua. Espinoza. 23 May 2020.
  12. Web site: Eminem was the only solo artist to sell 500,000 "pure" albums in 2018. . January 21, 2019.
  13. News: Opinion - Ringo Starr Is 70. Eduardo. Porter. The New York Times. 7 July 2010. 22 June 2018. https://web.archive.org/web/20180622170345/https://www.nytimes.com/2010/07/07/opinion/07wed4.html. 22 June 2018. live.
  14. Web site: The Beatles Get Back to No. 1. 22 November 2000. E!. 22 June 2018. https://web.archive.org/web/20180622165745/https://www.eonline.com/news/40784/the-beatles-get-back-to-no-1. 22 June 2018. live.
  15. Web site: Best-selling music act ever: The Beatles. heart.co.uk. 22 June 2018. https://web.archive.org/web/20180622192630/http://www.heart.co.uk/showbiz/celebrities/celebrity-photos/pop-record-breakers/beatles/. 22 June 2018. live.
  16. Web site: A Timeline Of Opening Acts Who Became Bigger Than The Headliner. VH1. 22 June 2018. https://web.archive.org/web/20150430035100/http://www.vh1.com/news/5861/opening-acts-bigger-than-headliner/. 30 April 2015. live.
  17. Web site: Seven Top 10 hits. Eight Grammys. 'Thriller 40' revisits Michael Jackson's magnum opus. USA Today. June 25, 2024. November 23, 2023. Melissa. Ruggieri.
  18. Web site: Best-selling album . . June 29, 2017 . https://web.archive.org/web/20171204004808/http://www.guinnessworldrecords.com/world-records/70133-best-selling-album . December 4, 2017 . live .
  19. Web site: Best-selling single . . 14 November 2020 .
  20. The First Billboard: All That Was 'New, Bright and Interesting on the Boards'. Billboard. 22 June 2018. https://web.archive.org/web/20171101232809/https://www.billboard.com/articles/columns/chart-beat/6746273/first-billboard-issue-november-1-1894. 1 November 2017. live.
  21. News: The Incredible Talking Machine. June 23, 2010. dead. https://web.archive.org/web/20130817090940/http://www.time.com/time/specials/packages/article/0,28804,1999143_1999210_1999211,00.html. August 17, 2013.
  22. Book: Popular Music: Music and society. 9780415332675. Frith. Simon. 2004.
  23. Billboard 200 Turns 60! Celebrate Its Birthday With These Essential Chart Facts. Billboard. 4 December 2017. https://web.archive.org/web/20160324224520/http://www.billboard.com/articles/columns/chart-beat/7271910/happy-birthday-billboard-200-chart-album. 24 March 2016. live.
  24. http://www.bbc.co.uk/programmes/b01qhn70 Synopsis of "When Albums Ruled the World."
  25. Web site: First million seller CD. guinnessworldrecords.com. 4 December 2017. https://web.archive.org/web/20171112150533/http://www.guinnessworldrecords.com/world-records/first-million-seller-cd. 12 November 2017. live.
  26. Stefani, Peas Lead Singles Boom. Steve. Baltin. . January 20, 2006.
  27. News: Sainsbury's stops selling CDS and DVDS. BBC News. 8 July 2021.
  28. Book: Controversies of the Music Industry. registration . 213 . Greenwood Publishing Group . 9780313310942. Barnet. Richard D.. Burriss. Larry L.. 2001.
  29. News: Passey. Brian. Vinyl records spin back into vogue. 2 March 2011. USA Today. February 26, 2011. https://web.archive.org/web/20110302075221/http://www.usatoday.com/money/industries/retail/2011-02-25-vinyl25_st_n.htm. 2 March 2011. live.
  30. Record Store Day Drives Vinyl Sales to Historic Peak in SoundScan Era. Billboard. 2016-01-20. https://web.archive.org/web/20130428081924/http://www.billboard.com/biz/articles/news/record-labels/1559614/record-store-day-drives-vinyl-sales-to-historic-peak-in. 2013-04-28. live.
  31. Record Store Day Breaks Sales Records, Nirvana Tops Vinyl Singles. Rolling Stone. 25 April 2014. 2016-01-18. https://web.archive.org/web/20140426115234/https://www.rollingstone.com/music/news/record-store-day-breaks-sales-records-nirvana-tops-vinyl-singles-20140425. 2014-04-26. live.
  32. Prince: A Guide to His Complex Web of Label, Internet and Distribution Deals. Billboard. 22 June 2018. https://web.archive.org/web/20180623224756/https://www.billboard.com/articles/news/6070311/prince-a-guide-to-his-complex-web-of-label-internet-and-distribution-deals. 23 June 2018. live.
  33. Web site: We're living through the merch bundle wars. Levy. Lauren. Fader. August 23, 2018. June 12, 2019. https://web.archive.org/web/20190518144548/https://www.thefader.com/2018/08/23/were-living-through-the-merch-bundle-wars. May 18, 2019. live.
  34. Web site: U.S. Sales Database. RIAA.
  35. Web site: Robbie Williams to pave Chinese roads - NME. 16 January 2008. NME. 22 June 2018. https://web.archive.org/web/20180622165208/http://www.nme.com/news/music/robbie-williams-88-1338919. 22 June 2018. live.
  36. Web site: Interview: EMI's Guy Hands. Richard. Wray. 15 January 2008. The Guardian. 22 June 2018. https://web.archive.org/web/20180622165238/https://www.theguardian.com/business/2008/jan/15/6. 22 June 2018. live.
  37. Web site: Lady Gaga tops the 1million mark in first-week album sales. Todd. Martens. Los Angeles Times. June 1, 2011. June 25, 2011. live. https://web.archive.org/web/20110607014824/http://latimesblogs.latimes.com/music_blog/2011/06/lady-gaga-tops-the-1million-mark-in-first-week-album-sales.html?cid=6a00d8341c630a53ef014e88d516a9970d. June 7, 2011. mdy-all.
  38. Web site: Guess How Much Money Amazon Lost by Selling Lady Gaga's Album for 99 Cents?. Amons. Barshad. New York. June 2, 2011. June 25, 2011. live. https://web.archive.org/web/20110606123408/http://nymag.com/daily/entertainment/2011/06/guess_how_much_money_amazon_lo.html. June 6, 2011. mdy-all.
  39. Web site: Free U2 album: How generous giveaway turned into a PR disaster. The Independent. 22 June 2018. https://web.archive.org/web/20140919174622/https://www.independent.co.uk/arts-entertainment/music/features/free-u2-album-how-the-most-generous-giveaway-in-music-history-turned-into-a-pr-disaster-9745028.html. 19 September 2014. live.
  40. Web site: Achieve £1 million turnover with CeX. upriseVSI. www.uprisevsi.co.uk. Franchise Magazine.
  41. Web site: Vinyl Is Bigger Than We Thought. Much Bigger.. Bill. Rosenblatt. Forbes.
  42. News: Vinyl collectors spent millions on Discogs last year. BBC News. May 2, 2018.

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