The sales of CDs have significantly decreased over the past decade due to the rise of digital downloading and music piracy. In 2000, over $37 billion was made from CD sales, but as technology advanced it became easier for people to illegally download music or access legal streaming services instead of purchasing physical copies. While legal sites like iTunes and Spotify now account for the majority of music sales and streams, artists earn much less per song or stream compared to physical CD sales, and must rely more on concert touring to generate revenue.
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Change of cd sales
1. THE CHANGE OF CD
SALES
How the sales of Cd’s have changed over the past decade
2. BEFORE DIGITAL
DOWNLOADING
Before Digital downloading, most sales were made off CDs
In 2000, over $37 Billion made from CD sales.
Lots of CDs and Digipaks were collected by fans.
Piracy was a lot harder to do, and easier to catch.
People had to make physical pirated copies onto blank CDs
3. RISE OF TECHNOLOGY
Due to the rise and innovation of technology, file sharing and downloading has
become increasingly easier and common.
Now most music is bought online, resulting in the decrease of the physical sales
of CDs; This has lead to the CD section of the industry slowly fading away.
Technology has also made it easier for people to pirate music. However instead
of buying pirated copies, individuals can pirate music themselves by using sites such
as “PirateBay” and “YouTubeConverter” to illegally download the music
themselves.
This has made artist rely more on sales of concerts instead of sales of CDs.
7. ITUNES
Artist who sell physical copies of their albums make 100% of the
profits
Artists who sell their music through Itunes lose a lot of profit for
each song they sell.
For a song selling for $9.99, the artist will only make $0.94 of profits,
records company makes $5.35, and Itunes takes the remaining $3.70
8. SPOTIFY
A music streaming site where customers have access to an
incredible amount of music in an expensive way.
Artists do not profit that much from Spotify.
It would require an artist music to be played 4,053,110 times on
Spotify in order for an artist to make minimum profit
9. HOW ARTIST MAKE MONEY
Make majority of their money from concerts, tours, and royalties.
Some artist create their own record labels to cut out the
middleman and raise their personal profits.
Popular artists can profit up to $1.5 million a concert
Less popular artists profit an average of $10,000 per concert
