Best Buy says CDs are out, vinyl is in

07 February, 2018, 01:45 | Author: Martin Tyler
  • Best Buy to Pull CDs, Target Threatens to Pay Labels for CDs Only When Customers Buy Them

CDs had a good run.

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Best Buy will begin removing any remaining CD inventory from its retail stores on July 1. Interestingly enough, the electronics chain will continue to carry vinyl records, a music medium that predates CDs but has seen a resurgence in recent years. Despite their status as an antiquated medium, they still sell pretty well internationally, though sales in the USA market were down 18.5% in 2017. We reached out to Best Buy for comment, but haven't received a response as of this writing.

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Sources also told Billboard that Target is looking to change the way they sell CDs and DVDs. According to the same article, now "Target takes the inventory risk by agreeing to pay for any goods it is shipped within 60 days, and must pay to ship back unsold CDs for credit". Billboard says the consignment demand puts the risk back to the labels and not the retailer. In addition, Target is also said to be reevaluating its approach to CD sales. Target is asking music suppliers to be compensated per CD sales instead of buying in bulk. Under the plan, Target would only pay for the discs when they are purchased, rather than upon receiving them.

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Even though people are increasingly getting their music from streaming services and vinyl, many were shocked and upset by Best Buy's decision. For example, a year ago Target moved 500,000 copies of Taylor Swift's latest, Reputation. We are committed to working closely with our partners to bring the latest movies and music titles, along with exclusive content, to our guests. Revenues from services providing streaming music represent 62% of the entire market for first six months of 2017, shows new numbers just released by the music industry's trade group RIAA. But over the past decade, digital media has become more popular and the aisles dedicated to physical discs at Best Buy have slowly been shrinking.



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