Wednesday, December 15, 2010

Digital Downloads Show No Growth Despite Massive Radio Airplay...

Music radio stations are not in business to sell music. Like all formats of radio, music radio stations are in business to get good ratings, which in turn will produce positive revenue streams. That's the business side of radio. Everything else, including music sales, are a by-product. While an argument can be made that music radio doesn't play enough new product to affect sales, how do you explain a paltry gain of 5% in digital downloads (tracks and albums) and 47 million fewer CDs sold in 2010 despite massive airplay of new music online? Billboard Magazine reports that in 2010, the growth in sales of digital downloads, which only last year had been marked and promising, "slowed to a trickle, as more consumers plugged into internet radio and video streaming sites." ...

The only recent sales spikes seen during the fourth quarter were fueled by the inclusion of the Beatles' catalog at iTunes and Taylor Swift's new "Speak Now" LP. Streaming sites are struggling to move digital downloads too. "Buy" links at such music services as Pandora and YouTube give millions of users the ability to make an impulse purchase. Pandora has more than 65 million registered users and YouTube streams more than 1 billion music videos from just the top 5 music labels, according to TubeMogul. Between the two, consumers streamed billions more songs in 2010 than they did in 2009. According to Billboard, the digital album is showing signs of age. Could that be a factor???

For the first time, digital albums sales declined for three consecutive quarters - from Q1 through Q4. If downloads are like any other consumer product, the current slowdown will be followed by an "irreversible slide in sales and revenue." Streaming alternatives that will accompany the download fall are already on the market. More are certain to follow in 2011. Whether they can replace the lost download revenue is another question...

10 Timeline Memories:
1.1791] Right on: The Bill of Rights, the 1st 10 amendments to the U.S. constitution, takes effect following ratification by Virginia (the state)…
2.1890] “Happy Trails“: Sioux Indian Chief Sitting Bull and 11 other tribe members are killed by the Native American police in Grand River (SD). Sitting Bull was 59…1966] Walt Disney dies from cardiac arrest at 65. Contrary to popular belief, Disney’s body was not frozen…
3.1939] Premiered on this date: “Gone With The Wind“, starring Clark Gable and Vivien Leigh has its world premiere at Loew’s Grand Theater in Atlanta…
4.1961] Guilty as charged: Former Nazi official Adolf Eichmann is sentenced to death by an Israeli court. Eichmann is hanged in 1962…
5.1982] Curtains: Paul “Bear” Bryant announces his retirement as coach of the University of Alabama football team. Bryant was the winningest college football coach in history at the time. The Bear will suffer a fatal heart attack at 69, one month later…
6.1982] Signed, sealed, delivered: Bill Parcells becomes the Giants 12th head coach and press conferences will never be the same…
7.1985] Wedding Bells: Sylvester Stallone and Brigitte Nielson shadow box down the aisle. This marriage ends in a KO in the 18th month…1990] Rod Stewart asks Rachel Hunter, do ya think I’m sexy? Apparently she does. She marries him. Not believing in quickie divorces, the couple’s divorce becomes official in November of 2006…
8.2003] Proof is in the DNA pudding: The late Senator Strom Thurmond’s family acknowledges Essie Mae Washington-Williams’ claim that she was Thurmond’s illegitimate mixed-race daughter…
9.2005] Election Day: Millions of Iraqis turn out to choose a parliament in a mostly peaceful election…
10.2007] HGH to the rescue: Yankee pitcher Andy Pettitte admits using human growth hormone to recover from an elbow injury, two days after the release of the Mitchell Report. People become suspicious when they see Pettitte with two left elbows…

Music Memories:
  • 1959] Recorded on this date: "Let It Be Me" - Everly Brothers...
  • 1962] Number One on this date: "First Family" LP - Vaughn Meader (LP tops the charts for the first of twelve weeks)...
  • 1969] Last performance: John Lennon gives his last performance in England for a UNICEF benefit in London...

"Happy Birthday...happy birthday":
Rodney Harrison (38), Mo Vaughn (43), Don Johnson (61), Dave Clark (68), Nick Buoniconti (70), Cindy Birdsong (71) & Tim Conway (77)...

Timeline Countdown: 6 days until winter, 7 days until Festivus, 10 days until Christmas, 16 nights until New Year's Eve & 24 days until the NFL Wild Card Playoffs...