Dead, Dying or Thriving? Music Sales Up in 2011.

A lot has been made in recent times of the supposed death of the music industry as we know, or knew, it. And let’s face it; all involved in the industry have been divided in their reaction.  Some have celebrated it as an end to the corporatisation of music, some have lamented the lack of change in the industry, while others have spotted opportunities and made good with it.

All are in agreement though, the music landscape has changed significantly since the heyday of places such as The Brill Building. But the honest fact is, artists still need the support of the industry to survive.

After the onslaught in the late 1990’s where music companies fought tooth and nail to prevent the digital revolution (anyone remember Virgin’s ill-fated Copy Protection that put a skip in tracks when they were digitised and required a special player to listen to? Or Napster? Or Metallica?), one could be forgiven that the backlash would spell the end of days for a seemingly ‘dinosaur’ industry.

Certainly, throughout the early 2000’s that was the case. Faced with declining revenues, major (and independent) labels sought to consolidate, cut costs and find new ways to make money. Problem was, it didn’t really change the overall business model though.

Forced into change by large online retailers such as iTunes and Amazon’s digital sales business; and on-demand services such as Spotify and Pandora, it seems that now the industry, and artists, have begun to adapt to a new reality.

Perhaps what’s so interesting about the latest US Music Sales figures and trends for 2011 released this month by Nielsen isn’t so much music sales growing, it is what’s growing.

Importantly, digital sales of albums rose 16.8%, while single tracks were up 9.6%. Spurred on by the distribution deal The Beatles that allowed their digital catalogue to be sold online, back-catalogue sales were up 5.4%. Some other highlights include:

• Rock is still the most popular genre of music, accounting for 32% of album sales;
• Sales of vinyl records rose 37% in 2011, and although accounting for only 1.2% of total physical sales, are projected to sell 3.6mn units in 2011 (up from just 900,000 in 2006);
• 93 of the 100 best selling vinyl albums in 2011 fall within Rock or ‘Alternative’ genres; and
• Music sales overall are up 1.6% in 2011, arresting years of decline.

While it’s easy to dismiss these numbers as potentially optimistic, given we’re not quite halfway through 2011 yet, it’s certainly the boost the industry might need to further embrace the digital revolution.

Another amazing take-away from the numbers is the dominance of the Rock genre. Forever the highest selling genre on volume, and that's a fact often overlooked in favour of pop releases. But remember, that’s only because very few pop artists get the majority of the attention (and sales). Meanwhile, Rock (and its multitude of sub-genres) has many artists all making a significant contribution and dividing the attention.

In all, these figures show something very important. Not only does it show that people are willing to still buy music, it shows they still value it. That must give heart to any musician, producer or retailer toiling away, trying to get noticed.

Were we all too quick to sound the death knell of the industry? 2011, so far, says yes.

Oh, and the best selling vinyl record of the year? The Beatles' Abbey Road.

The Beatles - iTunes Commercial