How CD sales have changed – 6

CD sales have fallen dramatically in the last 5 years. This is due to the increase in sales on the internet from legal online stores like iTunes and streaming services such as Spotify and Soundcloud. iTunes makes over $6.9 billion a year from which is around 74% of the internet market of $9.3 billion. Per album sold the artist earn anywhere from £1.02-1.44, and for every single sold they can make from 10p-14p. BBC News reported that sales had dropped from 56 million down to 44 million between January-June 2015. This was caused by the increase in streaming services which made an additional £697 million from the previous year.

The music industry is also negatively affected by illegal downloading sites which deprive the music market of $200-250 billion a year. HMV, a retailer which sells mainly CDs has seen a dramatic drop in the sale of CDs and their share price has decreased by about 5%.

Surprisingly modern music artists make most of their money through doing Live shows. Taylor swift made $39 million one year, $30 million of this was the Live shows she performed.

This graph shows the fairly dramatic decline in CD sales not only in the last 5 years but in last 9 years:

cd graph.jpg

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