Entertainment Companies Worried as Album Sales Continue to Decrease
Album sales have continued to decrease this year as a result of online buying and the consumer's want for different forms of entertainment such as video games. Entertainment companies in the business are beginning to fret over the decline in sales. Only 135.8 million albums were sold at the end of last week in comparison to the 163.3 million sold during the same time period last year.
Entertainment companies also blame the decline in sales on the lack of big-name records being released this year. Currently Nora Jones and Tim McGraw are the two biggest artists to release albums into the market. When well-know artists release a new CD, most people will buy the actual album rather than shopping online.
Obviously entertainment companies need to start looking at new options to bring in profit. What do you think should be done? And, why do you think there has been a decline in the quantity of albums demanded other than the fact that buying online is easier? Are companies such as Apple taking over too much of the market for music?
8 comments:
I think some options the entertainment companies could look at are making deals with the big online music sellers such as Apple, like the entertainment companies get a percentage of the music that Apple sells or other online music sellers. Or these companies could not let their music be so easily availible to the online music sellers, and filter it that way. I do believe that online music sellers is what has hurt the music industry, or these companies can just become competive at selling their music online. I do believe one day CDs will be obsolete.
Why don't people go out and buy CD? It could be because they are expensive. If the demand for CD's are lowering, then the price should be to. Supply and demand. Lower the prices and I'm sure you'll see sales go up.
This is a tough situation. As a consumer I try to get things as the lowest price. So sometimes I download songs & cd's online. I know this hurts artists who make the songs. On top of this, consumers get irratated when artists wait for periods of times before putting out another album. I dont know what to do to fix this problem.
The entertainment industry has all ready sort of partnered with iTunes (Apple) you can currently purchase music legally for 99 cents and also buy movies and podcasts. However, illegally downloaded music files is certainly taking a good bit of money from the entertainment industry.
I agree with Josh when he said that people aren't buying cds because it is so easy to download the music for 99 cents (or for free). What is the incentive for consumers? They must ask themselves would they rather plop down $10-15 for a cd or stay at home and get it for free?
There is not very much that you can really do if your an entertainment company. Maybe if they were somehow able to take back certain privelages from Apple selling their artist's songs individually online. I don't think there is really any other reason why the quantity of albums demanded as dropped besides the fact that it is easier to buy songs online. Not just buy songs, but illegally rip them from the net without paying anything.
Entertainment companies need to adjust to this and move on. they need to make a site on the computer and able users to download their music for a cheaper price than competitors and make it a competitive market. this is the only way that i see entertainment companies surviving.
itunes and the like is the way things are goin to be in the future cds will be replaced by downloaded albums on an ipod just like tapes were replaced by cds. This is the way it will happen and the record companies need to find a new niche if they are going to survive it.
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