Source: Angelo Merendino / Getty
This news shouldn’t really surprise anyone at all, honestly. With streaming and digital downloads taking over Best Buy has decided they will no longer sell physical CDs in their stores.
What took them so long?
Billboard reports as of July 1st, Best Buy has informed their suppliers they will be removing all music CDs from their shelves. Don’t worry vinyl collectors this won’t affect you for the next 2 years. Best Buy reports they only make $40 million a year from CDs which isn’t nothing to rave about by a retailer of their size.
Target isn’t too far behind in following Best Buy, they want to stop paying for all CDs and DVDs it receives and wants to ship back to suppliers whatever they don’t sell. Target wants to only pay for the CDs and DVDs they sell and have given suppliers until April 1st or May 1st to make the switch. As expected the three major music labels are not immediately on board with this at least one of them leaning towards telling the retail giant no according to Billboard. The other two right now are in limbo on the matter and have yet to respond.
Here is what Target said on the matter in an email statement to The Verge:
“Entertainment has been and continues to be an important part of Target’s brand. We are committed to working closely with our partners to bring the latest movies and music titles, along with exclusive content, to our guests.The changes we’re evaluating to our operating model, which shows a continued investment in our Entertainment business, reflect a broader shift in the industry and consumer behavior. We have nothing more to share at this time.”
Streaming services now account for 62% of percent of the revenue in the US music market. Warner Music Group read the tea leaves and already offered buyouts to its 130 staff who work with the physical product according to Billboard.
Now this news doesn’t mean the CD is dead altogether. Vinyl and the cassette tape oddly has seen a resurgence with artist finding ways to distribute their music on physical platforms still. So maybe the CD will see the effect but again this is just definitely a sign of the times.
Photo by Angelo Merendino/Corbis via Getty Images
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