In a moment of clarity, Billboard admits that album sales don’t tell the whole story of record label revenues. According to Billboard, “there’s more to the story. Recorded music looks better when streaming gains are taken into account.” As I’ve been arguing for a while, record labels earn revenue from a number of sources well beyond album sales. So the recent decline of albums and tracks is rather irrelevant when considering industry profits.
More than a decade after the launch of the iTunes Music Store, parts of the recording industry are finally changing the way they calculate sales. Billboard changed the metrics it uses to calculate the Billboard 200. Rather than calculating only album sales, Billboard 200 will now use “track-equivalent albums” and “track-equivalent streams.” This is the biggest change in the way that Billboard calculates this chart since the implementation of SoundScan in 1991, and it already appears to be every bit as monumental. Continue reading