Music Videos Surged in 20075 May, 2008 By: Erik Gruenwedel
Bucking the incessant decline of music CD sales and conventional wisdom, sales of music video DVDs increased 18.6% to 27.5 million units in 2007, generating nearly $485 million in revenue, according to new year-end statistics released by the Recording Industry Association of America.
By comparison, the trade group said music video DVD shipments topped 23 million units and $451 million in revenue in 2006, which represented 31.5% and 25% declines, respectively, from unit shipments and revenue in 2005.
“It's a pretty good market for music retailers,” said Geoff Mayfield, director of charts and senior analyst with Billboard. “They're smaller numbers [when compared] next to album sales and digital tracks, but it is a growth category and a sweet spot for [traditional] music stores.”
Mayfield said music video packaged media, while not necessarily a boon for mass merchants, benefited from a number of CD/DVD exclusives released by Best Buy.
“It gives a record retailer a larger selection,” he said.
Music video downloads in 2007 increased 43% to 14.2 million units and $28.2 million in revenue, compared to 9.9 million units and $19.7 million in sales in 2006. That increase came largely from such sites as YouTube and MySpace.com.
Not surprisingly, music CD shipments and revenue in 2007 declined 17.5% and 20.5%, respectively, to 511 million units (from 619.7 million) and $7.4 billion ($9.3 billion) in revenue.
CD single shipments actually increased 51.5% to 2.6 million units and $12.2 million in revenue, compared to 1.7 million units and $7.7 million in revenue in 2006.
Individual music file shipments increased 38% to nearly 810 million units and $802 million in revenue, compared to 586 million units and $581 million in revenue in 2006.
Overall, digital represented 23% of music sales, compared to 16.1% in 2006.