According to Nielson Soundscan, album sales continued to drop in the first half of 2007 by 15% while digital track sales gained 49%. As compared with previous years the decline in album sales is accelerating from 4% in the first half of 2006 and 10% during the same period in 2005.
We’ve gone full circle. The single is back and it looks like it’s here for good. Single digital track sales allow people to buy only the songs they want, and skip buying 10 track CDs, with song they may not want. While it looks like the music business is healthy, the revenue generated from album sales is declining faster than the increase in revenue from single digital tracks.
In an early post, The 3 track ablum and other heresies I suggested that one way for the recording industry to overcome this decline in 10 track albums might be to produce 3 track digital albums for the consumer. Hopefully, the labels are looking at this or other innovative ideas to overcome it’s woes.