Lowest music sales in 25 years

For the last 10 years, music revenues have never fallen more than 7%. This year the prediction was 4-8%. Now reality sets in. The actual numbers are looking more around 11%+. That would be the lowest sales in over 25 years. In fact, the last time the numbers were that low, people were buying records (which I would argue is a better product than what you get for your $0.99 digital download today).

It could actually get much worse than 11% because the first half of this year (2007), sales were down 20%! The industry is planning on making up some of those losses at the holiday season when they are releasing extensive back-catalogs to bolster sales.

The analysis seems to suggest that one of the biggest factors for this decline is due to the fact that people are buying songs, not albums. It is getting harder and harder for labels to pass off "filler" as valuable enough to purchase with the songs that people actually like. According to Times Online:

"The problem began in January after a surge in sales of digital music players over Christmas. Apple’s dominant iTunes online record store allows listeners to buy two or three single tracks in preference to a whole album, depressing revenues. "

You can read more details here: (http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/music/article2045335.ece)

What was the industry's reasoning for why this is happening?

What for it....

Piracy!

While that is no doubt true, we're all tired of this line. The battle for piracy is lost. Let's stop talking about what doesn't work, fighting a losing battle, and start talking about what is working. Where is revenue WAY up?

Ringtones, royalties, live music, and music DVD's. I think I see a trend...