CD Sales Down – Digital Up

by | 15 Aug, 2008

Two news stories this morning reveal the news that CD sales are down 8.5% while digital – online – sales are outstriping the CD format sales. The Daily Telegraph also reports that digital download sales are outselling CD’s by 20:1.

The Australian reports that: ARIA chief executive Stephen Peach believes that despite the CD slump, the 43 per cent rise in digital revenue, totaling almost $26 million, signals a healthier future for an industry that has struggled to embrace new technology and combat piracy.

However, I wonder what percentage of the lost CD sales are a result of Australians importing their own CD’s. Those who bring their music in from the USA for example will know of the amazing disparity between the cost of a CD in Australian music shops, compared to those in the USA. As an example, the new Alison Krauss CD will cost up to $38.00 in an Aussie music store. To buy the same item in the USA will cost less than $20.00, even less ($15.00) if you care to buy online.

Aussie bluegrass fans have long ago figured out that if they pool their resources and order direct, they can afford double the number of CD’s for the same cost if they buy online.

Read the articles: The Daily Telegraph / The Australian