Thursday, June 17, 2010

Even Less Shelf Space Ahead

If you've read any of my blogs or talked to anyone in the music industry you've heard over and over that digital distribution is what matters 100% to 99.99% of the artists out there with a product. It allows artist to distribute their music to the masses 24/7. As an example Tate Music Group provides artists with over 170 different digital retail outlets through our partnership with E1 Entertainment. If asked right now I couldn't name you 17 physical retailers that sell music in today's economy and it looks like another Major Retail Chain is redirecting its focus.

Billboard reported today that "BEST BUYS LOOKS TOWARD GAMING"
-- "As Billboard already reported, Best Buy shares dropped 6% on weaker-than-expected quarterly profits. The company did not reveal much about music sales, but it did make clear the category was among the losers last quarter."

What that means in the long run. As expected retail chains have dramatically reduced their shelf space for music, and it looks like the trend will continue. The majority of CD sales come from live events. With the ability to download singles and albums over the internet, physical CD distribution is becoming extinct.

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