Best Buy Will Cease Selling CDs Later This Year
Back in 2001, there were record breaking sales for CDs at more than 800 million copies. With the help retail giants like Best Buy and Target, CD sales were exploding. This number came crashing down due to the likes Napster, Limewire, and eventually iTunes. In 2017, retailers were only able to sell just 89 million CDs. Soon enough, Best Buy will cease selling CDs altogether, while Target will ask the record labels to front the costs.
Beginning in June 1st, Best Buy will no longer fer CDs in its retail stores as musical sales only generate roughly $40 million in annual revenue for the company. Best Buy has stated that they will sell vinyl for the next two years, but titles with be now merchandised with turntables.
While this is all going on for Best Buy, Target is pressuring record labels into signing consignment agreements. Last year, Target sold more than 500,000 copies Taylor Swift's latest album Reputation.