UK album sales continue to decline
It's the sixth consecutive year sales have fallen, according to a new report

January 5, 2011
http://www.nme.com/news/various-artists/54449



Sales of albums in the UK have fallen for the sixth consecutive year, according to the latest figures from the British Recorded Music Industry (BPI).

In 2010, combined digital and physical album sales in the UK fell by seven percent, from 128.9 million to 119.9 million. The report, which monitored details gathered by the Official Chart Company, said that despite the overall fall, sales of digital albums had actually risen by 30 percent.

Digital analyst Mark Mulligan said that the report indicates changing trends in the way music is consumed in Britain, reports BBC News. "The simple fact is that CD sales are declining much more quickly than digital sales are growing," he said.

Physical sales of UK singles have also slumped, the report found, falling to 1.9 million sales in 2010 from 2.5 million the year before. This comes despite the combined physical and digital singles market recording the highest sales figures ever with 161.8 million.

HMV to close 60 UK stores in 2011. Not looking good for the brick & mortars.

Rick A.

Just about over for brick & mortars.

The govt gave Internet companies many breaks to get their business models a chance many ears ago.
Well, B&M's can't compete, even with online storefronts alone due the unfair playing field in taxation or lack of.

Rick A.

Taxation really has nothing to do with it for me - it's tough to compete when you charge list price for a CD (Borders, B&N) and the online folks sell them at 20-40% off as a regular price. If the competition was across the street instead of online, they'd still be getting their lunches handed to them.

Plus, it's about availability. How many times have IMWANers gone to a B&M to find they don't have the CD or DVD we're looking for? I love my local guitar store (well, preferred guitar store - there are several closer), but I've bought guitars online because the places online had them and my store didn't. Some could have been ordered, but some couldn't - it was get it or miss out.

Taxes may be part of the problem for B&Ms, but they're just that - part of the problem. There are multiple other problems that the B&Ms can't - or as often as not, WON'T - address.

Alan

There getting closer on closing that tax loophole - at least in Illinois. And while there will be ways around it...soon enough the VATUSA will be upon us.

Your right about the taxes as only being a part of the issue. The very high price for insurance is another example. A couple of indie owners who had closed have told me over the years another issue is the lease agreements with extremely high insurance requirements.

Of course their is also the inability for indies or even B&M's to buy enough in large quanity to get the price breaks that even lead to loss leaders for the larger of the big boxes.

I love buying online but also love to shop locally. The commerce dept or whoever needs to find away to help to level the playing field or their will be no stores or sales personal but simply wharehouse workers in large depots.

Rick A.

I'd wager that there are at least as many independent music sales personnel as ever, maybe even more. It's just that they're just manning online storefronts at Amazon and eBay rather than local walk-ins. B&M is a dead business model for music.

Someone should start a band called Brick & Mortars.

This past Christmas, I ordered a few gifts online in November, figuring that I'd make a road trip or two in December and grab a bunch of other stuff, figuring that the prices would be favorable and I wouldn't have to pay shipping. Guess what? I really didn't find a goddamn thing worth buying in any store. Next year, it'll be strictly Amazon and Ebay for all my gift-giving needs.

I still think there are a few exceptions left for B&M stores.

Amoeba is still a tremendous place with great selection. Every time I go to the Bay Area, I spend a ton in San Francisco and Berkeley stores.......(taking another vacation in April.) They always seem very busy.

Agree with that Charles. I believe more and more that a music store to survive will need to be a size of an Amoeba in the Bay Area, or , damm the name escapes me, it's located in Fords, NJ and the Sound Exchange in Tampa,FL. If you do not have the size then best you become a collector or speciality type.

Linda is correct too in that B&M for music may DOA BUT Indies can survive and may actually do better in the future because of trade and no B&M competition. Yeah, I love my Online retailers but in most cases is that they sell, not trade. Trade and used items are the very fun part of the "hunt".

Rick A.

Vintage Vinyl......I drive past it going home from work every day. I shop there alot too.

That's it Charles, damm Senior moments happening already.

Man, I would hate to pass that everyday, I be broke. Great store, every NJ trip I make it my business to stop there. I literally have to take nap after shopping there, so much to go through.

Rick A.