Music Sales Are Up After 7 Year Decline. Don't Count Your Chickens Before They Are Hatched.

 Nielsen Soundscan data is repoting that U.S. music sales are up for the first half of 2011. These numbers are through the week ending July 3.  Album sales were up almost 1%.

According to TechCrunch: 155.5 million albums were sold in the U.S. in the first six months of 2011, compared to the 153.9 million albums sold at this time last year, resulting in that slim 1 percent hike. Of course, when one includes single-track downloads (generally speaking, 10 songs are the equivalent of an album) the number of albums sold comes to 221.5 million, resulting in a 3.6 percent rise. 

These numbers are not exactly a breakthrough.  I don't think the record labels will be doing a dance yet considering Adele is the number one record and she sold just over 2 million copies. 


It's going to take a few more reporting periods to see if the trend continues. 

Is Soundscan Relevant?

Jeff Price, the founder of TuneCore has a post asking for a new way to quantify music sales. He points to a recent CNN piece The Plan to Save the Music Business. The focus of the piece is on A&M/Octone records, but it also speaks of the amount of new records released last year and those that sold more than 250,000 copies. From Jeff's blog:

"...106,000 new (music) releases in 2008" In 2009, TuneCore released approximately 90,000 releases This means, if their numbers hold true, almost every single new music release in 2009 was distributed via TuneCore.
In addition, the article went on to quote the following Neilsen statistic "Of the 63 new releases that sold more than 250,000 copies last year, 61 were issued by major music companies." Well then, according to Neilsen, there are now four major "music companies" - Sony, Warner, EMI and, according to Neilsen, TuneCore as all of the following TuneCore artists sold over 250,000 copies....and mind you, this is a not a complete list:

He goes on to list 11 acts and concludes with the following:

And what about the arbitrary concept of looking at a weeks worth of sales, why not a days, or a months, or a years? Things are moving much faster. More music is being recorded and released. Music buyers are moving faster too. Seems to me that the age-old concept of weekly album sales has lost its relevancy. It’s time to get a new system that more accurately reflects the new “IT” – and this time, its important not to consolidate the power of the reporting into the hands of one company.

Vinyl Will Not Be Saving the Music Industry Anytime Soon

There has been so much written and much buzzed about vinyl albums making a huge comeback. According to this posting on triplearadio.com :

Nielsen Soundscan last week said that CD sales are down 16% in the past 12 months, while downloads have gone up 34% in the same time frame. What was really interesting is that vinyl sales have almost doubled this year so far, from 454,000 in 2007 to 803,000 so far in 2008.

Not even a million new vinyl records sold in the past 12 months. Even though it's double what it was the prior 12 months, that number is not enough for all albums sold to qualify as a platinum record. It's an interesting point, but until that number is in multiple millions, it doesn't mean much as a statistic.