37% More CD Releases Are Competing For Far Fewer Slots

According to radio consultants SBR Creative Media’s Music Notes, Sean O’Connell of marketers Music Allies at the recent Radio & Records AAA Radio Summit shared statictics that show significantly more CD’s are being released than ever before. The belief is that CD’s are easier to record and distribute than ever before which has led to many more indie labels. At the same time space at retail is shrinking.

According to O’Connell, 38,269 new titles were released in 2003, 44,476 in 2004 and 60,331 in 2005 – a 37% increase in two years. In 2005 32 albums sold 1 million copies or more, 62 new albums sold 500,000-1 million, and 316 albums sold under under 500,000 but more than 100,000 copies. That means that only 410 newly released albums sold more than 100,000 copies in 2005.

SBR makes the case that it’s another example of the Long Tail of profits from niche sales. It should also be a wakeup call for record label execs at all levels that in the new music industry profits need to be more about long careers and less about quick profits.

Source: SBR Creative Media and thanks to Barney Kilpatrick at Rattlesby Records & Management