How do you purchase your music or movies these days? Given how much more convenient digital purchases are (you can buy and listen/watch it right away), it’s not surprising that more people are turning to digital versus purchasing physical copies or their music and movies, and it looks like retailers are picking up on that.
So much so that according to a report from Billboard, retailers in the US are looking to phase out the sales of CDs. The report claims that Best Buy, who used to be the most powerful music merchandiser in the US, has told music suppliers that they will pull CDs from its stores starting from the 1st of July, 2018. Apparently CD sales for the retailer has dropped to $40 million annually, which we guess isn’t enough for them.
In fact Best Buy isn’t the only one feeling the pinch as the report claims that Target is also looking for a way to reduce their losses. The retailer has apparently told suppliers that they want to sell CDs on a consignment basis, where they only have to pay labels for CDs that are actually purchased by customers. This is versus the current method where Target is taking most of the risk.
Of course this isn’t to say that physical formats are dead. Recently we have heard how vinyl is experiencing a revival, where companies that got out of the game are now getting back into it.
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