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How much money is made per music format sold?

We all own some music.

Whether it be strictly on digital downloads from Apple, Amazon, or other digital vendors; CD purchases, cassette tapes, vinyl — or, if you’re going super old-school, 8-tracks or even some 45 singles… owning music to be able to play on-demand, in the manner and format that most appeals to you, is what some would equate to living the perfect life.

USB Cassette-to-MP3 Converter
USB Cassette-to-MP3 Converter

But as you look at yuor collection of vinyl… that you then replaced with CDs… that you’re now in the process of converting to digital MP3, AAC, WAV, FLAC, or other digital format… the question can come up as to HOW MUCH MONEY HAVE YOU SPENT ON EACH MUSIC FORMAT over the years?

Luckily, Paul Resnikoff has calculated this out for you and presented the information in a set of PIE CHARTS FOR EACH YEAR, representing the percentage in sales that each format generated each year.

Over time, the formats may have changed.  So for your pleasure, here’s a list of all the formats that Paul has looked at – then we’ll get to some of the details:

  • LP/EP
  • Cassette
  • 8-Track
  • Vinyl single
  • CD
  • CD Single
  • Cassette Single
  • Music Video
  • DVD Audio
  • SACD
  • SoundExchange distributions
  • Digital album downloads
  • Digital single downloads
  • Subscription and Streaming
  • Mobile
  • Download Music Video
  • Kiosk
  • Synchronization

The peak for CD sales was in 2002, where CD sales accounted for 95.5% of all music sales.  Sure, cassettes were still selling – but they only accounted for 1.7% of sales that year.  The writing for cassettes was written on the wall by this time.

2004 showed more decline for CD sales.  CDs still took in 92.7% of the market, but now started to face competition for album and single downloads.  1.5% in digital sales certainly isn’t menacing.. but time will show what happens as streaming entered the picture in 2005.

Mobile music picks up some momentum in 2006, taking 6.6% of the market.  CD sales fell to 79.7%

2007 seems to be the major tipping point.  Mobile is almost 10% of the market, CD sales are just at 70%, and lots of former listening methods are now showing their contribution to be 0%.

Fascinating at how Mobile has taken a digger come 2012 compared to what it had in 2007.  Mobile-specific listening is no longer an exclusive option as other methods of listening to music are becoming easier to find and use.  CD sales are at 35.8%.  Surprisingly to some, LP/EP sales are still hanging tough at 2.3% of all music sales.  Streaming is at 8.1%, but should be growing stronger into 2013 – especially if Apple decides to come through with their own streaming service to challenge Pandora and others.

Music will always make money for artists and labels — the biggest question is what that distribution method will be, and whether people will continue to agree to “rent” their music (as subscription services and DRM force you to do) or if people will begin to revolt and insist on “owning” what they buy.

Either way, these charts are not over being drawn.