Record sales for 'cheap' albumsA record number of albums were sold in the UK in the last year because they are now cheaper than ever, industry figures have revealed.
More than 228 million albums were sold in the 12 months from June 2002 - up 3% on the previous year - according to the British Phonographic Industry (BPI).
And they were on sale for an average of £9.79 each, which is a new low, the BPI said.
But despite the healthiest album sales recorded, music industry profits are down.
Click here to have your say on record prices
The BPI said the total UK music market for the first six months of 2003 was down 7% in sales values, compared with last year.
Artists such as Robbie Williams, whose Escapology album has sold 1.8 million in the UK since its November release, have dominated the album charts in recent months.
Other album successes have come from Norah Jones, with sales of 1.5 million, and Avril Lavigne and Justin Timberlake, with 1.2 million each.
ALBUM SALES
Five years ago (1998): 210 million
Ten years ago (1993): 153 million
Twenty-five years ago (1978): 107 million
CD prices have dropped as record shops have been forced to compete with supermarkets and websites, which are able to sell them for less.
Tesco recently said it had overtaken Virgin to become the UK's third-largest music retailer.
"It is clear that cheap retail prices on offer to the consumer, combined with strong new release titles, are sustaining the UK album market at a high level," a BPI statement said.
Norah Jones: Sold 1.5 million albums in the UK
A spokesman said inflation had been taken into account when assessing how the average retail price compared with previous years.
But while sales increased, lower prices meant the value of the albums market was down 2%.
Along with sliding singles sales, they helped push the overall value of record sales down by more than 4%, the BPI said.
And the problems for the record companies were compounded by a 26% drop in both the value and volume of singles sold.
"Although an annual total of 41 million units compares favourably with virtually every other international territory, the fact remains that demand has halved within the last five years," the BPI said.
Tell us what you think on the form below. Are albums still too expensive?
Perhaps if record companies spent a little less on hyping up the new signings, only to drop them a few months down the line and repeat the process all over again, the profit margins would be a little higher.
Fiona, Scotland
I get new-release albums from internet stores, such as CD-WOW or Play, as I believe £8.99 is a fair price. The only time I ever buy albums from the high street is when there are sales or "3 for £20" offers, and this is usually to complete collections of a particular artist/band.
Jason Bytheway, UK
I stopped buying CDs when the price rose over £10 back in the early nineties. Now the price has dropped below £10 at Tescos I've started buying again.
The file sharing networks are providing competition to the music biz monopoly and this is all good for the consumer. The monopolies and mergers commission should be defending Kazaa...
Andy, UK
Music quality has been spiralling downwards for years, with more attention paid to image than the music itself today. On top of this, prices in the shops are ridiculously high - just compare UK prices with online shops or shops in North America or Europe. Put these factors together, and it's no wonder that sales are down!
Rod Taylor, UK
With chart CDs available in the supermarkets for £9.99, I cannot understand why people are still buying the same chart albums in stores like HMV for £13.99. Yes they offer a wider range of albums, but for the chart CDs consumers would be silly to look anywhere other than supermarkets or the internet.
Nick, UK
Cheaper CDs are good for the industry and the consumer. I used to buy only 5-6 CD's a year because I thought the shop prices were a rip-off. Now that I can buy cheaply from cd-wow, I've started to vary my selections, explore new artists and ultimately spend a lot more on music every year. How can that be bad for the industry?
Ger Couglan, Ireland
As an ex-music industry employee, I am fully aware of just how cheap a CD is to manufacture and just how much the greed of both the record company and then the record store pushes the prices up to their obscene levels. Chart CDs could drop to the £6 range and still the artists, record companies and retailers would make decent profits - and would compete against the illegal downloads. Until the music industry realises that the greed-fuelled days of the 80s and early 90s are over, consumers will continue to be ripped off and will, quite rightly, download stuff or obtain it via other means.
Duncan, UK
When will the music industry realise that they are sitting on a goldmine of back catalogue music which is generally unavailable in the shops? If this was available online at say 50p per track, I'm sure the execs in their suits would stop moaning about file sharing. Bring it on!!
Chris Turner, England
What a surprise, when prices are more reasonable, people buy more. The reason sales have been so low is the greed of the record industry. Now all they have to do is improve the quality of the output and invest in artists rather than dishing up one hit wonders.
David, UK
Even the prices of the "cheaper" albums brought about through price competition greatly exceed the manufacturing and promotional costs. With demand for CDs at an all time high, one wonders whether the record companies should review their costs and charges rather than worrying about file swapping.
Muzzy, Scotland
Cheap? CDs? At a tenner each? I buy about 200 CDs a year and wouldn't pay more than about a fiver, tops. Remember CDs cost less than vinyl LPs to produce and transport, they should be much cheaper than they are. It's not as if the artist gets any money from them, the cash is all retained by the bloated record companies.
Dave Heasman, England
How can the BPI claim demand has fallen by half over the last five years if last year's sales were a record? Could it be that the industry is trying to cover up their failed arguments about internet piracy?
Wayne, UK
Album prices are still far too high. Only if you're after manufactured pop are you able to find cheap albums on sale. The average price of an album which is in less demand is about £15. It's cheaper to buy many CDs from US websites despite the $20 shipping fees.
With CDs so cheap to manufacture you should be asking where the money is going. The best way to fight piracy would be to lower prices.
Isaac, England
Four pounds for a single song, is it any wonder that demand for singles is down? I used to buy quite a few singles when they were two pounds, but now I just get the album.
Robert Shiels, England
It is just pure economics!! If you can get the same product cheaper then the average punter will do so. It is very pleasing to hear that the price of an album is now less than a tenner and the record industry are having to put up with it. Consumer power is alive and kicking!!
Simon, Brighton, UK
With the current trends in the music industry, I can see a tacit scenario wherein falling profits lead to declining investment in new acts and artistic development, and the mainstream music industry stagnates because the target markets become less tolerant of bland, formulaic releases.
Kenny, UK
I have just come back from the States where I picked up a lot of CDs for $9.99 or less. The record industry is still making a profit at this price, so why can we not see these prices over here? Don't forget that with the exchange rate the CDs are one-third cheaper than the price in dollars.
Steve Withers, UK
Record companies need to undertand that the demand is there at the right price. If they embrace the new media, rather than try and stop it, they can eliminate the huge costs of distribution and retail selling. Investors in record retailers beware!
Richard Halhead, UK
With prices through the Internet at £8.99 including shipping added to rapid shipment and excellent service in many cases, makes experimenting with little known artists or bands a viable approach. Personally I am buying probably 3-4 times the number I did in the past due to the lower costs and convenience of on-line ordering.
KP, UK
The industry seems to forget that downloads drive sales... You buy the album if you like the downloads but not if they suck. Try making some better product and wake up to fact that we need another Rolling Stones not another Gareth Gates SO INVEST IN REAL BANDS and we'll still becbuying their stuff in ten years time!!!!
Stewart, UK
I'd be interested to know how this compares with the situation pre-CD. When everything was on vinyl, the average album price was around £7; then CDs came out and for a while everything shot up to £13 minimum. Yes, margins are tight now - but is this actually a long-overdue correction in a market which inflated itself artificially sometime around rhe late 1980s?
Guy Clapperton, UK
Sadly, the latest excuse is piracy ... it's never poor product, poor decisions and lack of public choice. Strangely, the best selling albums of last year were all real singers/real writers not poor pop acts. Why pay inflated prices when you can get much cheaper from the internet? People will pay if it's worth it!!!
Phil, UK
It puzzles me why the record industry is slating file-downloading as "killing their business"...Is it really THEIR business? They are simply exploiting the talent that is available.
If anyone is killing the record industry, it's the record companies pushing rubbish into the charts.
Once upon a time, the charts used to be based on how good the songs were and the artists would last for decades. Now though, artists last to their first million, then they disappear (or break up as bands).
The music industry isn't about musical art anymore, it's about maximising profits by extorting money from your audience!
Marty, Berkshire, UK
The music industry seems to be only concerned with constantly increasing profits, and they have been able to get away with it for years, producing far too many poor quality products. Now we have a situation where the consumer is more informed and empowered. We will decide on the future of the music industry - "the customer is always right"! I
n the long term this will improve both the quality and demand for music. In the mean time the good bits of the music industry will prosper but the not-so-good will suffer, and so they should.
Biggles, Norwich, England
Vanella Mead took the words out of my mouth, but the fair point to make is, £8.99 is great when it's new or mainstream, but anything more specialist and these sites either don't stock it or the price is the going rate. HMV's still the only chain left where you can get a no-hassle refund for not liking something, or (quickly) changing your mind about it - and for that, the premium's justified.
Ken, England
This is all very well, but the choice at my local supermarket is VERY limited. You can get everything in the top 20 for less than £10, but it you want something other than that, then you end up paying full price £15.99.
I don't bother with highstreet retailers at all. I can get a much better selection of CDs online, all of them for £8.99 (sometimes even less), free postage, and next day delivery.
Mark Gillespie, UK
CD prices single or album have been a rip-off from day one. They still are. Sure you can buy a relatively restricted range of chart singles or albums at more "reasonable" prices, but step out of the chart and the old rip-off prices are still in full effect. I had to pay £5 for a non-chart single last week!! The record companies deserve all they get.
Paul Norman, UK
I find album and single prices so high in this country that I now buy my music online from the States. Why should I pay to drive to the nearest shop and then pay the extortionate prices when I can have the music delivered to my door for a fraction of the price?
A Jones, UK
Record number of sales???!! One minute the record industry is crying about internet file swapping killing the music industry, the next minute they are trumpeting record increase in sales..... What is going on?
Daz, UK
The price of music is not the biggest problem in my opinion. The real advantage that downloading MP3s has is its convenience. I was pleased when I heard that it was now possible to legally download MP3s from certain sites for 99 cents each. I switched on my computer, fished out my credit card and... discovered that this was only available to customers in the USA. And the music industry wonders why there is so much privacy when they make it more difficult to buy their music than to buy a beer in Wales on a Sunday.
Lewis Paines, Czech Republic
Album and single prices are far too high. With new online services offering singles for download for 75p this is slightly better value. But I think the cat is out of the bag with regard to online file swapping. If cheap downloads had been introduced before file sharing took off then it might have worked. Why would people start buying something that they're now used to getting for free?
Nat, UK
Now, what does this say about the truth of the record industry claims that filesharing is hurting their sales? It would tend to suggest that over-expensive albums are to blame, rather than file sharing for much of the drop in sales. I would suggest that the other main cause in the drop of music sales is the simple lack of quality of much of the material that the record companies produce.
David Newton, UK
I spend a great deal of money on cds each month. I buy most of them on the internet at £8.99 or less, or in the supermarket at less than £10. The reduction in prices just means that I buy more and therefore the profit per cd may be down but, like many other people, I am adding to an overall sales inrease. I like the big chainstores for their choice of product, but how can they justify charging £13.99 for new releases - because they rely on lazy/habitual buyers I suppose.
Jeff, Castleford, England
I think this proves that file sharing isn't killing the music industry, but the need to make ridiculous profit for shareholders. People are fed up of being ripped off. Prices down - sales up. It makes sense.
Leigh, UK
Glad that these figures might finally give the record industry pause for thought in their constant "the internet is killing music" griping. They can and will get very little sympathy from the public for a fall in profits. That's what happens when you can no longer charge £16.99 for something that costs 50p to produce!
Andy, UK
The greed merchants that are the music industry should now take note that it is not file sharing or piracy that has "damaged" their industry but themselves. Their efforts at artificially holding prices as high as possible have backfired, although it is unlikely we will see record company executives living in cardboard boxes. Perhaps they will also provide some choice, rather than Simon Cowell's latest project, and then enter the 21st century rather than the era they seem to have stopped in.
Phil, UK
I think around £10 for an shop-bought album is a fair price. However, record companies need to pass on to consumers the reduced cost of delivering music via the internet if they want them to sign up to subscription services rather than engage in file swaping.
David Watterson, UK
It's about time record prices dropped. Now they are trying to compete against illegal pirate recordings and downloading. £10 for a CD is just right rather than a few months ago when chart CDs were £16.
Scott Vaughan, UK
I won't spend more that £10 on any CD unless its a double or special addition by a band/artist I collect.
I never go to music shops in the UK now and always buy from CD Wow online who are based in Hong Kong and sell the majority of music cd's for £8.99.
There are bargins out there you just have to look for them. Shop around and don't accept the normal high street rip off, from Virgin or HMV.
Vanella Mead, UK
― tom black, Monday, 18 August 2003 13:37 (twenty-two years ago)