Major Record Labels See Growth . . . But still say sales are in decline

As more data is released from 2014, we can see that major record labels celebrated a year of indisputable growth. Yet, they continue to include language that makes it sound as if the industry shrank.

“While the U.S. music industry suffered through its worst sales year since the advent of SoundScan (now Nielsen Music) in 1991, streaming was so strong last year that the industry nevertheless saw growth — yes, growth — in 2014, when new metrics to measure music revenue are taken into consideration.” Continue reading

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Major Record Labels Sell More Music as the Album Declines

Record-Album-02Album sales are down. But that really isn’t the point. Albums were the logical result of the available recording technology. At first, recorded music was limited by the “brevity dictated by the size of the shellac plate.” In other words, the length of a song was limited to the length of a side of a 78-rpm record, which for a while was about 3 minutes. The album only developed as a concept with the 33 1/3-rpm LP record, which could initially hold 22 minutes of music per side. Rather than lengthening a song, record companies began bundling 3 minute songs together in the form of an album. With digital music, it does not necessarily make sense for record labels to produce albums if they can release digital tracks. Continue reading

Billboard 200 Recalculated

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