Atlantic Records: Digital Music Sales Killing Physical Formats
Atlantic Records reports some “surprising” statistics (surprising for old media models at least). During the fourth quarter, digital music sales made up more than half of Atlantic’s revenues. 51% of sales came from non-physical sources such as music downloaded form iTunes and ringtones. One industry analyst quoted by the New York Times was shocked, stating “That’s very high. No one is near that,”. It’s equally surprising that this development comes as a shock. To anyone keeping an eye on media consumption, this move away from physical media is an obvious one. Some record executives are shook up by this development, wondering how they will make money in the digital world. Hmmm, maybe big record labels are kind of an anachronism? Others have been doing just fine selling digitally.