Electronics big-box store Best Buy has officially said it will stop selling compact discs for music. Department store Target also said it would do the same if record labels didn’t agree to better terms. The news comes as sales numbers for CD sales continued to fall last year.
Story Continues Below
Want to Make Your Own Beats and Songs? Check Out Our Free Ultimate Beginners Guide and Start Making Bangers Today!
Sales of physical music fell 18.5% last year and streaming digital music took over as the dominant format for music fans in the U.S. And although sources say Best Buy still sold $40 million of CDs, it told the labels it would stop selling them last July. The company still plans on selling vinyl, however, for at least two more years.
Target, on the other hand, wants terms where they don’t have to pay for the CDs until they are sold. Other retailers like Amazon and Walmart will likely want similar terms.
But it may not just stop at selling CDs. According to HypeBot:
Download sales are also feeling similar pressure with multiple labels telling Hypebot that iTunes has told them that they will stop selling music downloads sometime in 2019.
It seems as though the traditional model of profitability for music labels continues to die it’s slow death. Streaming, however, – which is still not a profitable business to be in – has brought profitability back to the music business as a whole.
It will be interesting to see how things play out over the next couple of years.