CD sales increased last year for the first time in 20 years, contributing to the UK’s overall music spending reaching its highest point since the era when Destiny’s Child, Limp Bizkit, and David Gray dominated the top album rankings.
In 2023, the total revenue from music sales, which includes streaming, vinyl, CDs, and downloads, increased by 9.6% to reach £2.2bn. This was only 0.08% lower than the record set 22 years ago, according to the ERA.
The album that sold the most copies was The Highlights by The Weeknd, even though Taylor Swift’s album releases were the most popular in the market. The top-performing song was Flowers by Miley Cyrus.
The sales of CDs increased by 2%, due to a rise in prices and the popularity of pricier exclusive albums among music enthusiasts. Some of these consumers are choosing to purchase CDs, which are still relatively affordable, in addition to or instead of vinyl records.
The number of CD sales decreased by nearly 7%, which was a significant improvement from the 20% decrease in 2022 and the smallest decline rate since 2015.
Compact discs, which are typically priced at £10 or less for a full album, making them about half the cost of a comparable LP, are in competition with vinyl as the preferred format among fashionable students and older music enthusiasts.
According to Kim Bayley, the chief executive of the ERA, the focus is on collectors who are finding CDs. CDs offer a permanent digital format, which is appealing to those who subscribe to multiple services. Additionally, there are many exclusive items and memorabilia available.
According to her, the sales of CDs are projected to level off or potentially rise due to a growing number of smaller retailers now carrying the format in response to increased demand. This is also attributed to younger generations adopting it as a means of displaying their music collections, in addition to existing fans.
The managing director of HMV, the largest music and entertainment retailer in the UK, stated that they have been experiencing high sales for deluxe collectible albums by various bands for some time now. He noted that the demand for these albums is very strong. Additionally, he mentioned that the retailer has also been pleasantly surprised by the increase in teenage customers purchasing CDs and has been adjusting to cater to their preferences.
“They desire an item for their collection that indicates their fondness for Joy Division or Nirvana, but are unwilling to pay the price of a record,” he explained. “A CD offers similar features to a vinyl album, such as liner notes.”
The demand for physical music formats, including vinyl, helped boost sales in 2022 after a challenging year. In terms of value, vinyl sales increased by 18% and volume by nearly 12% last year.
Despite the increase in streaming sales by 9.8% to £2.2bn last year, physical music formats such as vinyl and CDs only made a total of £311m, indicating a significant difference in sales.
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Overall, the digital entertainment market saw a 8% increase in sales, which included games, videos, and music. This led to a total market growth of 7%, reaching £11.9 billion. However, sales of physical videos and games experienced a decline of 18.8% and 4.4% respectively.
The UK’s top source of entertainment, digital video, experienced an 11.6% increase in sales, surpassing gaming and reclaiming its position after approximately ten years. This was due to the emergence of newer services like Paramount+ and ITVX, in addition to popular options such as Netflix, Amazon Prime, and Apple TV. The highest-selling video of the year was Avatar – The Way of Water, with 560,000 copies sold.
The overall revenue for video increased by 10%, reaching £4.9 billion, while the overall sales of games saw a 2.9% increase, amounting to £4.7 billion.
The top-selling console video game was the most recent version of EA Sports FC 24, a football game endorsed by Fifa. The new title sold almost the same number of copies as the previous one, approximately 2.39 million.
Source: theguardian.com
