Best Buy planning to pull CDs from stores: Report
The extinction of CDs looms a little closer. According to a new report from Billboard, Best Buy told music suppliers that CDs will no longer be sold in stores beginning July 1 — and Target could be following suit.
As music streaming services continue to flourish in the digital age, Consumer Affairs notes that 89 million units of CDs were sold in all of 2017 — compared to the 800 million sold in 2001. Billboard further reports that CD sales comprise only $40 million of Best Buy’s annual business, while Target reportedly told suppliers that the company would begin to sell CDs on a consignment basis, meaning it would only pay labels for CDs when customers buy them.
Vinyl customers at Best Buy, however, have more time; records will continue to be sold for the next two years, according to Billboard.
A rep for Best Buy declined to comment to EW, but Target offered this statement: “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.”
The decline of CD sales isn’t exactly a shocker when compared to the performance of streaming. Apple Music recently told The Wall Street Journal that it serves about 36 million paid subscribers, which is up from its 30 million subscribers reported in September. With a growth rate of 5 percent to Spotify’s 2 percent, Fortune predicts Apple’s streaming platform could overtake Spotify as the No. 1 streaming service in the U.S. On a global scale, Spotify’s subscriber base is almost twice as that of Apple Music’s.