MUSIC|MEDIA|DESIGN

Nielsen Soundscan reports that 2009 U.S. Music Purchases up 2.1% over 2008 as Music Sales Exceed 1.5 Billion for Second Consecutive Year.  This news bears repeating, in light of the music industry’s constant, deafening whine: Total music purchases have in fact increased each year since 2005!  For the record, 1.01 billion music purchases were made in 2005, 1.2 billion in 2006, 1.4 billion in 2007, and 1.5 billion last year, as noted above.  While it’s possible poorly managed large companies, willing to overspend for talent, overpay executives, and ignore market realities could lose money on growing sales, it’s impossible to feel truly sorry for them.

The report has plenty more good news, especially for small labels and savvy artists.  First digital downloads continue to grow, providing a direct path to revenue open to all.  Better yet, albums represent an increasingly large portion of those sales, versus singles, growing 16% to reach a new peak of 20% of all downloads!  These trends only accelerated in the fourth quarter of a recession year, suggesting a positive future.  Indeed, hits are happening in the digital space, at levels previously reserved for physical CDs: Black Eyed Peas, Lady Gaga and Flo Rida all had singles that sold to quadruple-platinum levels (more than 4 million sales each)!

While the Zeros are considered a “lost decade” in many industries, it was a rebirth for the music business.  We’ve crossed a threshold, selling nearly twice as many albums online as physical CDs.  Album sales are moving away from traditional retail, to non-traditional venues.  It’s remarkable to note given the numbers above that non-traditional music outlets represent most of that growth in albums versus singles, adding 11% over their 2008 sales, ultimately accounting for nearly 30% of total album sales in 2009.

The corner has been turned.  It’s morning in the music industry!