Accounting for the big plunge in “music sales”: the digital singles effect

March 22, 2007 Michelle Field

I found an article that discusses how CD sales have rapidly decreased and the main reason for this is because of the increase in music downloads online. It also states that in comparison to last year the sales have gone down by 20%. As a result of this many music stores have been forced to close as there is no money being made.

“Last year the industry saw about $2 billion in revenues from online music sales, and nearly $800 million of that stemmed from single-track sales, according to the International Federation of the Phonographic Industry’s report. That leads me to estimate that at least 40 percent of sales are singles, which means that this quarter we could see something in the range of 70 million “singles” sold digitally.” (http://arstechnica.com/news.ars/post/20070321-accounting-for-the-big-plunge-in-music-sales-the-digital-singles-effect.html)Therefore also people seem to just purchase singles online rather than whole albums but why is this? I know that I would rather download singles as this way you are not stuck with tracks that you are not so fond of that usually are included within whole albums. You can simply pick and obtain your favourite songs by an artist instead. If you brought their singles on CD it can also be more expensive than purchasing it via downloading, plus downloading enables you to place all your favourite tracks/singles in one place. P2P file sharing is one of the internet’s technologies that is also put to blame for the decline of physical CD sales.

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