Industry Analysis & Industry Trends
Continued shifts in consumer preferences and competition from large discount and digital music retailers have dampened consumer demand for the Record Stores industry. With increased accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined significantly over the past five years. While consumer sentiment is expected to improve in the next five years, this industry will fail to experience revenue growth. Consumers who are accustomed to digital music are not likely to return to making regular purchases at record stores... purchase to read more
Industry Report - Industry Analysis Chapter
The Record Stores industry is shrinking under pressure from inherently less expensive substitutes. Digital music continued to prove itself a viable alternative to prerecorded content over the past five years, causing many to switch to downloading and streaming options through internet services. Additionally, the increased prevalence of music in discount stores decreased people's willingness to shop at record stores. As such, industry revenue is expected to fall at an annualized rate of 5.7% over the five years to 2014, including a 2.3% decline in 2014 to $2.0 billion.
The industry has experienced revenue losses from 2008 onward as a result of decreased consumer spending during the recession, driving up price competition in a highly competitive industry... purchase to read more