Best Buy was the go-to store for so many music fans in the 1990s-mid 2000s. After we had to spend $16-$20 to get a CD album at music retail stores like Sam Goody, Best Buy actually had affordable prices. You could find such prices at Wal-Mart, but without anywhere near the selection, and with explicit lyrics edited out. Best Buy was the one place across America that had reasonably priced music, unedited, with a tremendous selection.
But then we learned how to download music (and actually began to have internet that didn’t make it a total pain in the ass). Peer-to-peer file sharing apps like Napster, Limewire, and Kazaa came along. And since, iTunes, YouTube, Pandora, Spotify, Google Play, Amazon, etc have of course come along.
When’s the last time you bought a CD (or, at least one that wasn’t a friend’s band or something at a concert/event that you were trying to show support for)? An actual, physical compact disc. I honestly can’t remember when I did, but it must have been at least 10 years ago. And in terms of regularly, probably 15+ years ago.
So, while the following report from Billboard is not in the least bit surprising, it’s still pretty sad.
Billboard reports that Best Buy has told music suppliers they will pull CDs from their stores July 1. The report adds that Best Buy’s CD business these days “is only generating about $40 million annually.” However, the store will continue to sell vinyl for the next two years.
Best Buy has just told music suppliers that it will pull CDs from its stores come July 1. At one point, Best Buy was the most power music merchandiser in the U.S., but nowadays its a shadow of its former self, with a reduced and shoddy offering of CDs. Sources suggest that the company’s CD business is nowadays only generating about $40 million annually. While it says it’s planning to pull out CDs, Best Buy will continue to carry vinyl for the next two years, keeping a commitment it made to vendors. The vinyl will now be merchandised with the turntables, sources suggest.
Additionally, Target is looking to cut back on CD sales. According to Billboard, Target has told music suppliers that they will only pay for the CDs the store ends up selling.
Meanwhile sources say that Target has demanded to music suppliers that it wants to be sold on what amounts to a consignment basis. Currently, Target takes the inventory risk by agreeing to pay for any goods it is shipped within 60 days, and must pay to ship back unsold CDs for credit. With consignment, the inventory risk shifts back to the labels.