LOS ANGELES (AP):UNITED STATES album sales were down about seven per cent as 2005 drew to a close, but the budding market for music downloads, which more than doubled over last year, helped narrow the revenue gap, according to figures released Wednesday.
Album sales from January through the week ending December 25 stood at 602.2 million, compared with 650.8 million for the same period last year, according to Nielsen SoundScan.
Combined, album and singles sales fell about eight per cent over the same time last year. More than 95 per cent of music is sold in CD format.
Downloaded tracks from online retailers soared to 332.7 million this year, compared with 134.2 million in 2004, an increase of 148 per cent.
While good news for recording companies looking to expand download sales, it doesn't bode well for music retailers relying on customers to buy music CDs rather than digital downloads to turn a profit amid declining sales.
"More and more we're seeing customers switch to downloads or burning CDs from their friends," said Jesse Klempner, owner of Aron's Records in Hollywood. "The last couple of years we've been hanging on by our teeth."
RISE IN MUSIC DOWNLOAD
The top three best-selling albums of 2005 through December 21 were rapper 50 Cent's The Massacre, Mariah Carey's The Emancipation of Mimi with 4.6 million sold, and Kelly Clarkson's Breakaway, which sold 3.3 million units, Nielsen SoundScan said.
Full-album downloads are counted under album sales along with other formats. Most digital downloads reflect single-track purchases.
Holiday shoppers helped pump up music download sales figures with some last-minute shopping, buying 9.6 million downloads the biggest sales week ever for digital downloads, according to the company.
Final 2005 figures will not be available until January 4, 2006.
- Taken from the Financial Gleaner, Friday, December 30, 2005.
