Thursday, November 27, 2008

Digital sales surpass CD sales at Atlantic Records

from - By Davie Barret
Atlantic Records has come out with an almost shocking, but somewhat predictable, statement recently, declaring that they get most of their revenue from digital sales, rather than from sales of CDs. This might be the crossroad every record company has feared since the digital music files have come out a decade ago.

It has always been a question of "when" rather than "if" digital sales will surpass traditional compact discs. Atlantic Records has declared that they get most of their revenue from digital music stores, like iTunes 
, and from selling ringtones for cell phones. The major record company has stated that this is a milestone that no other company has yet reached, as most than half of their winnings come from the digital, rather from CDs.

On the other hand, analysts don't think that overall, digital music will surpass CD's by the end of 2011 and that Atlantic's statement is really a thing other record companies should take in consideration.

This is important as the change to digital is unavoidable and preparations must be made. This transition poses some problems in terms of how much the record companies will profit. Until now a CD contained a full album, several songs, which the buyer purchased when paying for the CD. With digital music, the consumer has the option to choose what songs to pick, making prices, inevitably, drop.

Solutions can be found of course, like concentrating more on concert tickets and tour merchandise and even promoting bands and artists through the Internet and other new media mediums.

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