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News
Music Buyers Are Increasingly Single Minded
Thursday, May 10th, 2007 at 4:00 PM - by John Martellaro
Music buyers have increasingly turned from purchasing complete albums to buying singles. That has the music industry worried, according to the Mercury News (AP).
In increasing numbers, buyers are showing a preference for the 99 cent single rather than the $15 CD album. This not only affects the historical cohesiveness of the traditional album, but its also affecting the labels profits.
In fact, while customers still buy plenty of CD albums, the numbers are down and the sale of singles increasing. Specifically, album sales are down 20 percent while singles sales are up 20 percent from a year ago.
"Now, were in a very difference place in terms of the single business," Jim Donio, president of National Association of Recording Merchandisers, said in an interview. "The single business is alive and well, and its in the form of track downloads."
The 99 cent singles also generate less profit than albums, and Apple has been under pressure to raise music prices to compensate for that.
Some albums provide a format for a story arc, but they are rare. Avril Lavigne is still in love with the album, but admits that times are changing. Steve Rifkind, founder Street Records Corporation agreed, but also blamed "lazy" executives: "People are going after one hit. They are not really caring what the album sounds like ... They are not into artist development anymore. If us as an industry went and started developing talent again, and not worrying about one hit, it would be more than a singles-driven business again."
Once again, it appears, fast moving digital technology and changing customer preferences have entertainment executives befuddled. All except Apple, it seems.
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