Sales in the slumping music business are hitting another sour note at the halfway mark of 2008.
After plunging 15 percent in 2007, digital and physical album purchases are down another 11 percent through the first six months of this year with just over 200 million units sold, according to Nielsen SoundScan.
The fading CD business remains the chief culprit in the industry’s woes, dropping another 16 percent. Sales of digital songs and digital albums, which are both up over 30 percent this year, have not been strong enough to make up for the fall.
Geoff Mayfield, director of charts for Billboard, said the industry needs to make moves to curb the pace of decline in physical sales.
“Record companies should try to get a more realistic price point for physical product in the marketplace,” Mayfield said. “The industry has been teaching the consumer that if you buy an album at iTunes it costs $9.99. While high-profile physical albums are priced at that level in the first week or two they are out, after that it’s at least a $12 or $13 [price tag], if not higher, depending on where you find the album.”