2008 – Worst Year for CDs. Ever.

The Guardian had several music industry related stories posted over the past couple of days. Apparently CD sales for the fourth quarter are expected to be down by a whopping 27%. Last year, sales for the same quarter were down 21%. One of the many reasons for the decline could be the record companies’ insistence on maintaining their position as gatekeeper to music, dictating when we get to hear records everybody knows are finished and just sitting on a shelf somewhere. Why can’t they just release the damn thing, or, as one of the Guardian’s bloggers notes, at least put it up on itunes and other digital sights. Bands like the Raconteurs, Radiohead and Girl Talk have figured it out, so why can’t the labels (My guess? Hubris). If you know it’s out there already (probably posted online via review copies), you’re going to skip the record company and just download it via bittorrent.

But while it looks like the whole industry is circling ’round the edge of the shitter, there is somewhat of a silver lining to the situation. Atlantic Records hit a huge milestone (whether it’s a good or bad one is up for debate), becoming the first record company where revenues from digital sales were greater than those from physical releases. Of course, that’s pretty easy to do when CD sales are down 27%.

And yes, that is a photo of unemployed rock stars lining up for their unemployment insurance. Try and spot Jack Johnson and Dave Matthews Band at the front.

A Tribe Called Quest – “Show Business”