Is the era of the compact disc coming to an end?
Could this be the last nail in the coffin of the compact disc? It might just be in retail stores. With the surge in digital media sales, the CD format is holding its own, but still recorded an 18.5% drop in sales in 2017. This is forcing retailers such as Target and Best Buy to remove CDs from their shelves. shelves.
At one time, Best Buy was America’s most powerful music dealer. It now devotes very little space in its physical stores to CDs. While it might seem like a big change, Best Buy’s annual CD sales are around $ 40 million, and the chain has informed music suppliers that it plans to remove CDs from its stores as of the 1st. July. Best Buy will honor its commitment to suppliers and offer vinyl records over the next two years, moving them to the turntables section of the store.
According to Billboard, Target required music providers to sell CDs on consignment. Target’s current agreement with the labels is that Target pays for all merchandise shipped within 60 days, taking huge inventory risk. Target no longer has to pay to return unsold CDs for credit. Target wants labels to take all the risk with a consignment contract. Display sources also say that in the fourth quarter of 2017, Target gave music and video providers an ultimatum that they want to switch to a scan-based trading system. This means that Target will pay for the goods as they are purchased at the checkout. The original date set for the analysis-based system was February 1, but has been pushed back to April 1 or May 1. Like Best Buy, Target has drastically reduced its inventory of CDs over the years, now carrying just 100 titles per store. .
This puts music makers in a difficult position. Sources say one major player has said no, while two others are undecided. Music makers say they’re waiting to see what happens with DVDs. If manufacturers do not accept these new conditions, could this be the end of the era of the compact disc?