Monday, June 25, 2007

Compact Disc's Outlook Worsens

Compact Disc's Outlook Worsens
Louis Hau, 06.22.07, 6:45 PM ET

The compact disc, for years the music industry's dominant format, appears to be falling out of favor with consumers faster than industry observers had predicted. Digital music? Another story.

In a report, industry analysts Richard Greenfield and Mark Smaldon of Pali Research in New York said they now expect U.S. unit sales of CDs to slide 20% in 2008, a bigger decline than the 15% drop they had previously predicted. Moreover, decline would come on the heels of an expected 18% drop in U.S. CD sales in 2007.

"We are increasingly skeptical that the rate of CD decline will slow in 2008, as CDs increasingly become less relevant to the daily lives of the core music-buying population,'' Greenfield and Smaldon said in their report.

A key factor affecting CD sales: how quickly those big-box retailers such as Best Buy (nyse: BBY - news - people ) shrink the amount of floor space they devote to music to levels more comparable to Wal-Mart (nyse: WMT - news - people ). Combined with the growing utility of digital music, it could easily lead to even more rapid decline in CDs in 2008-2010, they said, pointing out that such losses will hurt their otherwise healthier music-publishing businesses.

Meanwhile Apple (nasdaq: AAPL - news - people ) released data Friday from research firm NPD Group showing that the company's iTunes Store was the third-largest music retailer in the U.S. during the three months ended March 31.

iTunes finished the quarter with a 9.8% market share, putting it behind Wal-Mart (15.8%) and Best Buy (13.8%) but ahead of Amazon.com (nasdaq: AMZN - news - people ) (6.7%) and Target (nyse: TGT - news - people ) (6.6%). To compare Apple's mostly single-song download sales with the mostly physical sales at the other retailers, NPD converted single-song iTunes downloads into album units by considering every 12 downloads as an album.

Greenfield and Smaldon said they expect U.S. unit sales of digital music to grow 28% in 2008, slowing from projected growth of 47% this year. However, rapid growth in digital sales will still fall short of making up for the decline in CD sales.

As a result, the Pali analysts expect total U.S. unit sales of recorded music to decline about 9% in both 2007 and 2008. (For their calculations, they counted every 10 digital tracks as an album.) They also reiterated their "sell" rating on Warner Music Group (nyse: WMG - news - people ), the only major record label whose shares trade publicly in the U.S.


As always, comments are welcome.

5 Comments:

Blogger oakleyses said...

ugg boots, uggs on sale, burberry outlet, longchamp outlet, nike air max, christian louboutin uk, oakley sunglasses, louis vuitton outlet, louis vuitton outlet, tory burch outlet, longchamp outlet, michael kors outlet online, ray ban sunglasses, oakley sunglasses, louis vuitton, tiffany and co, jordan shoes, uggs outlet, prada outlet, cheap oakley sunglasses, oakley sunglasses wholesale, ray ban sunglasses, gucci handbags, replica watches, oakley sunglasses, replica watches, nike free, ray ban sunglasses, tiffany jewelry, michael kors outlet online, michael kors outlet, michael kors outlet online, polo ralph lauren outlet online, ugg boots, christian louboutin, nike outlet, burberry handbags, louis vuitton outlet, chanel handbags, michael kors outlet online, louis vuitton, polo outlet, nike air max, longchamp outlet, michael kors outlet, uggs outlet, kate spade outlet

11:51 PM, February 02, 2016  
Blogger oakleyses said...

lululemon canada, true religion outlet, new balance, coach outlet store online, nike blazer pas cher, jordan pas cher, kate spade, ralph lauren uk, north face, true religion outlet, air max, nike roshe, polo lacoste, sac vanessa bruno, coach outlet, converse pas cher, nike air max uk, nike air max uk, hollister uk, oakley pas cher, replica handbags, burberry pas cher, hollister pas cher, nike air max, louboutin pas cher, mulberry uk, nike free uk, timberland pas cher, longchamp pas cher, coach purses, ray ban pas cher, nike tn, true religion outlet, nike roshe run uk, sac longchamp pas cher, abercrombie and fitch uk, michael kors, sac hermes, ray ban uk, nike free run, polo ralph lauren, guess pas cher, vans pas cher, nike air force, michael kors outlet, michael kors pas cher, north face uk, hogan outlet, true religion jeans, michael kors

11:52 PM, February 02, 2016  
Blogger oakleyses said...

soccer shoes, north face outlet, p90x workout, louboutin, wedding dresses, celine handbags, nike roshe run, nike huaraches, timberland boots, mont blanc pens, iphone 6 plus cases, beats by dre, abercrombie and fitch, babyliss, vans outlet, bottega veneta, iphone 6 cases, nike trainers uk, new balance shoes, hollister, oakley, iphone 6s cases, lululemon, longchamp uk, iphone 5s cases, ghd hair, mcm handbags, mac cosmetics, hollister clothing, soccer jerseys, ralph lauren, giuseppe zanotti outlet, chi flat iron, nike air max, insanity workout, s6 case, nfl jerseys, hermes belt, ipad cases, reebok outlet, instyler, iphone cases, ferragamo shoes, iphone 6s plus cases, asics running shoes, valentino shoes, jimmy choo outlet, baseball bats, herve leger, north face outlet

11:56 PM, February 02, 2016  
Blogger oakleyses said...

ugg uk, pandora charms, canada goose outlet, moncler, canada goose, canada goose jackets, marc jacobs, barbour, juicy couture outlet, pandora jewelry, moncler outlet, wedding dresses, ugg,uggs,uggs canada, hollister, moncler, moncler outlet, louis vuitton, canada goose outlet, supra shoes, louis vuitton, converse, montre pas cher, nike air max, thomas sabo, pandora jewelry, canada goose uk, canada goose, louis vuitton, toms shoes, pandora uk, vans, ugg pas cher, moncler, louis vuitton, ugg, doke gabbana, canada goose outlet, links of london, ray ban, gucci, moncler uk, barbour uk, hollister, swarovski, converse outlet, swarovski crystal, lancel, canada goose, doudoune moncler, moncler, karen millen uk

11:57 PM, February 02, 2016  
Blogger roba. gad3 said...

http://caravank.com/factory/
http://caravank.com/for-sale-in-riyadh/
http://caravank.com/withdrawn-for-sale/
http://caravank.com/withdrawal-rooms/
http://caravank.com/us-for-sale/
http://caravank.com/car-caravan/
http://caravank.com/for-sale-in-jeddah/


5:45 PM, November 09, 2016  

Post a Comment

<< Home