http://youtube.com/watch?v=_ErYRtuMuP0

CD Sales vs. Digital Downloads

By: Kevin Misner and Kevin Wilson

Introduction

Recently, CD sales have reached an all time low. The increasing amount of digital downloads every year has

led to the decrease and fall of CD sales. We will be analyzing how the Canadian industry and artists

are suffering from digital downloads and lower CD sales. We will also observe legal digital downloading and which

legal music downloading providers, such as iTunes, download the most and how prevalent they are today.

We will also examine how music lovers purchase there music in the 21st century, and what the future holds for the music industry and CD sales.

Procedure

Almost all of our sources came from the internet, except for one: a media analyst named Todd Beals.

He gave us statistics he had collected from many sources, as well as advice.

Our main sources of info were from: RIAA, CRIA, Nielsen Soundscan, Bridge Ratings, azoz.com, Creative Media and StatsCan.

Procedure: Cont’d

We didn’t use: 1980’s CD sale statistics, CD sales per popular recording artist and we didn’t use any data regarding just cassette or vinyl sales.

We calculated data by putting the data into a graph in excel or fathom.

From there we calculated: the mean, standard deviation, line of best fit, r2, z-score and regression.

Presentation of Data:Downloaders by Age

Music Internet Downloaders by Age

53

28

13

6

0 10 20 30 40 50 60

Teens

18-29

30-40

50+

Gro

up

s

Percentage

Total CD Sales Per Country

New Releases

New Releases (in thousands)

R2 = 0,3424

05

1015202530354045

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Rele

ases

(in

thou

sand

s)

Music Sales by Genre

Music Sales by Genre (2006-2007)

020000400006000080000

100000120000140000160000180000

Genre

Sal

es (

Th

ou

san

ds)

2007

2006

Digital Track Sales

Digital Track Sales

R2 = 0,0773

R2 = 0,4038

R2 = 0,6520

10

20

30

40

50

60

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Sal

es (

mill

ion

s)

2004

2005

2006

Share of U.S. mp3 Market

Share of U.S MP3 Market

75%

9%

3%

2%

2%9%

Apple

Scandisk

Creative

Microsoft

Samsung

Other

Media Purchase Trending

Music Media Purchase Trending

R2 = 0,9782

R2 = 0.9958

0

510

1520

25

3035

4045

50

2000 2002 2004 2006 2008 2010

Year

Pe

rce

nt

Re

sp

on

din

g

Online

CD's

RIAA Sales Projection

RIAA Sales Projection

R2 = 0,9665

R2 = 0,714

0

20000

40000

60000

80000

100000

120000

140000

2006 2008 2010 2012 2014

Year

Do

llars

(in

mill

ion

s)

Download Sales

CD Sales

Linear (CD Sales)

Linear (Download Sales)

Conclusion

There were various new ideas we found while analyzing our data, such as:– Digital downloading will succeed CD sales in profit

for music companies.– The Canadian music industry has begun to

stabilize thanks to legal digital downloading.– Record Companies have minimized the amount of

new releases since 2000.

Conclusion: Cont’d

Some outliers we discovered while analyzing our data were:– Teenagers and high school students.– 2015 expected profit from digital downloading.– The 2002-2003 new release drop.

Conclusion: Cont’d

In conclusion, ever since downloading came into the mainstream in 2000, CD sales have fallen dramatically.

It has caused the music industry to reduce the amount of new releases they could release over the past 7 years.

There is a new generation of music purchasing that's taking over the previous method of CD buying.

We also concluded that the amount of illegal downloading will not decrease and it won’t cause the music industry to fall to its knees.

Evaluation of Techniques and Sources

There were a few possible inaccuracies we discovered in our data, like:

– 130 000 000 000 dollars made through digital downloading in 2015.

– A lot of our data was outdated, and could only be found between 1990 and early 2000’s

There were not many biases or inaccuracies in the sources we found.

Our data came from highly popular, legitimate organizations.

THE END

PowerPoint made by: Kevin Misner and Kevin Wilson

Sources:

RIAA

CRIA

Nielsen Soundscan

Bridge Ratings

Creative Media

StatsCan

Special Thanks to: Todd Beals