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http://www.mercurynews.com/mld/mercurynews/news/local/states/california/northern_california/15744239.htm
Shipments in U.S. of non-digital albums down
in first half of '06
ALEX VEIGA
Associated Press
LOS ANGELES - Shipments of CDs, DVDs and
other non-digital music formats bound for
U.S. retail outlets were down in the first
half of 2006, but the decline was partially
offset by online and mobile music sales, the
recording industry's trade group said
Thursday.
Record companies shipped a total of 277.6
million units - CDs, DVDs, vinyl records,
cassettes and other physical formats - to
retailers, record clubs and other outlets.
The figure represents a 15.7 percent decline
from the year-ago period, according to the
Recording Industry Association of America.
The estimated retail value of the
non-digital inventory shipped in the first
six months of this year was $4.1 billion, a
15 percent drop from the same period last
year, the RIAA said.
The RIAA figures reflect retailers pulling
back on orders for CDs and other non-digital
products as sales of CDs have sagged in
recent years.
About 435 million albums, including those in
digital formats, were sold in the U.S. in
the first nine months of 2006, down from
about 439 million in the same period in
2005, according to Nielsen SoundScan. The
firm tracks retail purchases, while the RIAA
figures for non-digital formats represent
units shipped to retail outlets.
The good news for record companies is demand
for music in digital formats - including
Internet downloads and music used to
customize mobile phones - has been growing.
U.S. sales of digital singles rose 71.3
percent to 286.3 million in the first half
of the year, while the number of digital
albums sold more than doubled to 12.3
million, according to the RIAA figures.
The average number of subscribers to online
music services was up 45.1 percent to 1.9
million, the RIAA said.
In all, digital revenues during the period,
excluding mobile content, totaled $417.2
million, an increase of 86.6 percent.
Purchases of music content for mobile
phones, including master ringtones and
full-length song downloads, soared 97.5
percent to 144.3 million. The total revenue
from mobile formats nearly doubled to $356.4
million, the RIAA said.