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Showing posts with label album sales. Show all posts
Showing posts with label album sales. Show all posts

Thursday, December 16, 2010

6 Reasons Why The Album Format Died

I don't normally cross-post with my Music 3.0 blog, but I feel strongly about his topic and wanted to get it out to the widest audience.

I think it's safe to say that we're at the end of the "album age," and although the format will hold on for a while, it's clearly waning in popularity. I've given this a lot of thought and have come up with what I think are the reasons, but be aware, they're not all exactly what the popular wisdom assumes. So let's begin with the 6 reasons why the album format has, for all intents and purposes, died.

1) It was a visual experience. The album format in the vinyl record age had the advantage of that wonderful piece of cardboard known as the album jacket. The album jacket contained the cover art (still found on CDs), and most importantly, the liner notes on the back, which we'll get to in a second. But one thing that everyone either forgets or has never experienced is the fact that millions of albums were purchased completely on impulse because of the album artwork alone! 

It may be hard to believe, but it was quite common to come across an album cover that was so cool that you'd buy it without knowing a thing about the artist. Sometimes it would be a total loser, but you still had the liner notes to read, and occasionally that would still make it a worthwhile purchase.

2) It was an informational experience too. Those of you too young to have experienced this don't know how much the liner notes meant to nearly everyone who bought an album (the picture on the left gives you an idea how extensive they could be). You could spend hours reading a well-written gatefold jacket, checking out every credit, wondering just where these exotic studios were (Smoketree Ranch in Malibu was the one that always intrigued me the most as a kid), and generally just soaking up any info you could about the artist. Of course, this was way, way before the Internet, so the liner notes were sometimes the only place to find any of info on the artist at all.

To say the least, the visuals and information along with the music made buying an album a total experience that today's album doesn't some close to.

3) The demise of the record stores. Once again, this may seem hard to believe but nearly every community had someplace that sold records, even if it didn't have a record store. There was an entire network set up to supply records to department stores, supermarkets, even diners. You couldn't help but to run into someplace selling records during the course of a day.

But the record store was the place to not only buy music, but to spend hours browsing. Why? Because of the cover art and liner notes. You'd peel through a bin of records, stopping every so often to look at an intriguing cover, which made you want to read the liner notes, and maybe even buy the album as a result. 

But the record store was also the best place for word of mouth. The people that worked the record stores always knew what was hot, what was underground but about to pop, and what was overhyped. You could go into a store and ask a clerk, "What's really good?" and he'd give you 10 choices, most of which were pretty high quality. This is something that the music industry is still looking for today online. Now we call it "music discovery" and VC's still throw big money at anyone who claims to have an app.

4) The price. Albums used to be a bargain. A 45 RPM single used to cost anywhere from $.99 to $1.29 (ironically what a download costs today, except you got two songs then), but an album started at only $3.98, before prices gradually began to increase. Either way, in the beginning the album was a no brainer even for a kid on a tight allowance. For the longest time, the album was priced at $8.98, before it was discounted, which was still a bargain. 

The greed started in the early 80's as the major record labels were taken over by multi-national companies, the attorneys and accountants ruled, and the prices of the album began to rise - first with what they called "superstar pricing," which tacked on an extra dollar for a superstar act (Tom Petty sued his label keep the price at $8.98, a gesture that would be very unlikely today by a big music act).

5) The CD. Then came the CD, and the business went to hell in hand basket. The packaging was different, so the jacket was no longer needed, and as a result, the cover art became less important, and you couldn't really do extensive liner notes because the print would be too small to read. Then the record labels really got greedy, charging outlandish prices (called "technology charges") on a product that eventually cost them less than the vinyl records they previously were making. In fact, prices soared to $19.95 for a front line artist's CD. If you bought one of these and weren't completely and totally satisfied, you were pissed, since dropping a deuce on anything was a real commitment.

And of course, there were no more impulse buys anymore because the artwork behind a 5 inch piece of plastic just doesn't have the same impact as on a 12 inch piece of cardboard.

6) Too much filler. Most vinyl albums are between 35 and 45 minutes long. This was out of necessity because of the physics of a record. Make it any longer and it starts to get noisy, the frequency response suffers, and it won't be as loud. But 40 minutes or so turns out to be the perfect amount of time for listening. There's a time commitment you have to make, but it's well within reason, especially if you like the music. 

A CD is capable of containing a bit more than 73 minutes of music. Unfortunately, artists began to think that it was a really good idea to put all the garbage that they normally would've tossed from a vinyl record, and put it all on their CD. Now instead of having 40 minutes of great music, we had 55 minutes of mediocrity. Even if the artist had some great songs, it was frequently buried under another 50 minutes of crap. Now not only was the fan paying more money, but she was paying more money for less quality. Something had to give.

Which is just about the time MP3's and Napster came on the scene, which eventually helped push the music business from an album business into the singles business that it has now become. Ironically, popular music started with as a singles business, to whence it now returns.

It's easy to say that online music slayed the album, but it was only the final dagger after 6 long swords.
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Monday, September 14, 2009

Various New Items

Album sales in the US are down 18.1 percent in August from the same time a year ago. To make matters worse, compared to the same period in 2007, sales were off by 37.2 percent.

Want more good music sales news? Album sales are down 14.5 percent compared to the same point last year and 31.1 percent versus 2007.

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Regardless of decrease in album sales, it looks like The Beatles will sell about 500,000 in the first week since the release of their remastered catalog. That being said, you can bet that they are coming to iTunes, just not yet. I don't know why everyone expected this to happen last week because it's not to anyone's advantage to release the band's physical and digital product too close together, as it would cannibalize physical sales.

If both Apple computer and Apple records wait until later in the year for the digital release they can take advantage of the Christmas market with sales items like last minute iTunes gift cards, and use the iTunes release as a second launch of the physical product to take advantage of the Holiday.

Let everyone buy the CDs for now, see what the sell-through is, then release on iTunes. That's what I'm predicting.

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A new NPD study finds that U.S. video game sales fell in August for the 6th month in a row as sales were down 16% from a year ago to $909 million and 14% year to date. Hardware sales were down 25% as well.

Isn't the gaming business starting to look like the music business, as it's sales spiral ever downward?

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In yet another NPD report, kids 12 and younger account for 2% of video game industry unit sales and households with kids in this age group comprise 45% of total industry sales. The report also states that 57% of kids ages 2-12 play video games, and only 62% of them use a computer.

This means that there is some room for growth in this segment of the market if the industry can capitalize on it.

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