CD sales were down 18.5 percent previous year and some experts pin Best Buy's CD receipts to just $40 million annually. Physical music is only generating around $40 million in annual revenue for the company and executives would rather dedicate the floor space to more lucrative items, Billboard notes. Target executives are reportedly insisting they will only pay record labels for CDs after they sell them instead of paying upfront for inventory. Evidently, the retailer is now demanding that music suppliers agree to buy back any CDs that aren't sold within a 60 days. The vinyl will be merchandised with the turntables, sources state.
Download sales are also feeling similar pressure with multiple labels telling Hypebot that iTunes has told them that they will stop selling music downloads sometime in 2019. According to the same report, the retailer Target is cracking down on disc sales by giving suppliers a hard choice: switch to a consignment-based arrangement or risk losing the retail franchise entirely. That specific medium for music has seen a boost lately. Target is also wanting to do the same for DVDs. This way, Target would only have to pay for items that have actually sold. For example, previous year Target moved 500,000 copies of Taylor Swift's latest, Reputation.More news: Paul Ryan Brags About Giving Public School Employee $1.50
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Let us know, do you still buy CDs or do you use a streaming service?