CD Revenue Nearly Triples Digital Album Sales in First Half of 2024

[whiplash1972]

https://www.headphonesty.com/2024/09/cd-revenue-triples-album-sales-first-half/

CD Revenue Nearly Triples Digital Album Sales in First Half of 2024

Digital downloads are gasping for air while CDs rise from the dead.

The Recording Industry Association of America’s mid-year report has revealed an unexpected comeback story. CDs, once thought to be on their way out, have not only held their ground but are now outselling digital albums by a 3 to 1 margin.

This surprising shift might just be the final blow for digital downloads, as physical media strongly returns to the spotlight.

The Numbers Behind the Trend

Diving into the RIAA’s report, we’re seeing a music industry that’s not just surviving, but thriving.

While digital album sales are dropping fast to $87.8 million in the first half of 2024, CD revenue is steady at $236.7 million.

Sure, it’s only a tiny 0.3% uptick from last year. But, when you stack it up against the digital decline, it’s nothing short of remarkable.

In terms of units, 16.8 million CDs were sold in the first half of 2024, which is a 3.3% increase from the previous year. This growth, while modest, is very different from the 15.7% drop in digital album units, which fell to 8.9 million.

Looking at the bigger picture, the recorded music industry is on a roll, with total revenue hitting $8.7 billion – a solid 4% jump from 2023.

And, physical products, including the resilient CDs and the ever-trendy vinyl, contributed a hefty $994 million to that pot, marking a 13% surge from the previous year.

On the other hand, vinyl continues its own resurgence, with revenue growing 17% to $740 million and unit sales increasing 10.7% to 24.3 million.

Digital and customized radio services like SiriusXM and internet radio stations are also growing, up 2% to $672 million.

It seems there’s space for many different formats in today’s varied music scene. That is, except for digital downloads.

Factors Driving CD’s Resurgence

The unexpected revival of CDs is largely attributed to a surprising demographic: Generation Z.

According to data from SNEP, the French record industry group, 43% of CD buyers are under 35 years old. But, this trend isn’t isolated to France; similar patterns are emerging globally.

Several factors contribute to this renewed interest in CDs among younger listeners:

• Nostalgia and Novelty: For many Gen Zs, CDs are a physical link to a time they barely knew, creating a sense of both nostalgia and novelty.
• Artist-Driven Demand: Big releases from popular artists have made people interested in CDs again. For example, Taylor Swift’s “The Tortured Poets Department” sold 2.47 million CD copies in the first half of 2024.
• Physical Ownership: In a time when digital things can disappear, owning a physical copy of an album appeals to many music fans.
• Audio Quality: Some listeners prefer the uncompressed sound of CDs over streaming or compressed digital files.
• Affordability: Compared to vinyl, CDs are still a cheaper way to build a physical music collection.

Are Digital Downloads Dying?

The RIAA report suggests that digital downloads are indeed on their last legs. After 14 years of decline, they now make up only 2% of U.S. recorded music revenue.

The numbers are grim: digital album sales generated just $87.8 million in the first half of 2024, an 18.5% nosedive from 2023. Individual track sales aren’t faring any better, tumbling to $81.8 million – a 16.1% drop.

Add it all up, and the total digital download revenue (including albums, singles, and other formats) took a steep 15.8% plunge to $189.7 million.

Even ringtones and ringbacks, once a cash cow for the industry, saw a 51.1% revenue drop. It’s a clear sign that music lovers are moving away from ownable digital formats.

This downward spiral in digital downloads is very different from the steady sales of CDs and the rapid growth of streaming services.

In fact, paid subscriptions to music streaming services grew by 4% to a staggering $5.7 billion, now accounting for nearly two-thirds of total mid-year revenue.

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[Paulzx]

This is good news, even better if digital album copies totally go away or streaming stops you doing this by having to own the album at least in some physical way.

A return to good things of the past us always welcome