Best Buy Pulls Out Its Music CD Products From The Stores
Long before the emergence of the Internet where downloading music, videos, or streaming them on a streaming service provider, we’ve patronized the existence of physical CD’s where our favorite songs, albums, movies, and videos were embedded. We feel nostalgic whenever we go to a store and buy the CD or rent it for a longer period of time. And while the physical CD’s are no longer popular thanks to the evolution of technology, there are still some of us who love to buy CD’s and put them in our collection.
We often do this, especially if we love a certain artist, our favorite group, or our favorite movies. That’s why the Internet was heartbroken when Best Buy just recently announced that they’re starting to pull out their Music CDs from the stores.
Best Buy to Pull Out Music CD’s From Their Stores
It can be remembered that Best Buy took pride of being the country’s largest music merchandiser, that’s why it came as a huge shock to their valued and loyal customers to know that they will be pulling out all their music CD’s from all of their stores. The music suppliers and retailers had received a consignment order and agreement from Best Buy stating that they need to pay for any unsold inventory and that the company planned to start pulling out their music CD’s, and these products should perish from all their stores by July 1. More than that, it was also reported that Target would follow suit. Like Best Buy, they are also starting to communicate with their music suppliers about their unsold inventories too. One unnamed music manufacturer also stated that they will be filing a motion to counter this deal.
When the news exploded after the Billboard spilled the beans, people around the world were shocked with this new move. Music lovers are especially freaking out because they might stop buying their favorite CD’s on their favorite stores very soon. And many of them are confused on where to find their favorite albums once Best Buy and Target stop distributing music CDs. Even if this news draws out some negative feedback, some business owners and industry experts have already anticipated this movement. You can read some of the hilarious comments from fans below.
Best Buy’s Movement May Have Something to do With The Decline of Sales
It’s because online streaming services like Spotify and Apple Music are dominating the world. This places the CD industry in a tough position to compete. We can compare the sales graph from 2001 until 2017. In 2001, an astounding 800 millions of CD units were sold. However, as the years passed by, there’s a steady decline in sales until it plummeted down to only 89 million in 2017.
This data was obtained from Consequence of Sound. Along with this decline was the emerging and booming sales report of streaming services. In 2015, the music industry’s revenues increased by $500 million since 1999. This was the highest grossing rate the music industry gained after a span of years. And the major percentage of the sales were generated from the music streaming services websites. Following this was also the recent announcement of Ford MotorCo stating that they started releasing their newest car models without a CD player last year. This diminishes the demands for CDs further.
Best Buy decided to decline and address the issue. However, it seems that this is just part of Best Buy’s exit strategy or downsizing in order to minimize their profit loss. While it generates a steady income of $40 billion annually in over 1500 stores across the North American continent, Best Buy has been making drastic moves and decisions in their internal affairs. For one, the company just eliminated around 400 jobs in order to meet the technical services and needs of their customers. The customers can’t help but speculate that the recent downsizing was also related to the pull-out. Since they’re now removing the music sections in their stores, they won’t be needing staff to accommodate their customers. Hence, this resulted in the downsizing.
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