Best Buy, Target to Stop Selling CDs

Discussion in 'Music and Podcasts' started by Kobalt, Feb 3, 2018.

  1. Kobalt

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    Best Buy to Pull CDs, Target Threatens to Pay Labels for CDs Only When Customers Buy Them

    [​IMG]

    If the majors don't play ball and give in to Target's new sale terms, it could considerably hasten the phase down of the CD format.


    Even though digital is on the upswing, physical is still performing relatively well on a global basis -- if not in the U.S. market, where CD sales were down 18.5 percent last year. But things are about to get worse here if some of the noise coming out of the big-box retailers comes to fruition.

    Best Buy has just told music suppliers that it will pull CDs from its stores come July 1. At one point, Best Buy was the most powerful music merchandiser in the U.S., but nowadays it's a shadow of its former self, with a reduced and shoddy offering of CDs. Sources suggest that the company's CD business is nowadays only generating about $40 million annually. While it says it's planning to pull out CDs, Best Buy will continue to carry vinyl for the next two years, keeping a commitment it made to vendors. The vinyl will now be merchandised with the turntables, sources suggest.

    Meanwhile, sources say that Target has demanded to music suppliers that it wants to be sold on what amounts to a consignment basis. Currently, Target takes the inventory risk by agreeing to pay for any goods it is shipped within 60 days and must pay to ship back unsold CDs for credit. With consignment, the inventory risk shifts back to the labels.

    According to those sources, Target gave the ultimatum to both music and video suppliers in the fourth quarter of last year that it wants to switch to scanned-based trading, with a target date of Feb. 1. But while it is proceeding to push DVD vendors to switch to scan-based trading terms (i.e. the chain would pay for DVDs after they are sold or scanned while being rung up at the register), it has moved the deadline back to music suppliers to either April 1 or May 1. So far, music manufacturers are not sure what they are going to do, but sources within the various camps say that at least one major is leaning no, while the other two majors are undecided.

    If the majors don't play ball and give in to the new sale terms, it could considerably hasten the phase down of the CD format.

    Target has greatly reduced its music presence over the years. Once upon a time carried as many as 800 music titles, and nowadays seems to carry less than 100 titles in most stores. Yet, it can still be a powerful force on big titles. For example, the chain moved over 500,000 CDs of Taylor Swift's Reputation album.

    Music manufacturers suggest they are waiting to see what happens with DVDs. If the studios don't give into Target's demands, will Target pull DVDs from the store? How that plays out will likely influence what happens in music, sources suggest.

    Best Buy to Pull CDs, Target Threatens to Pay Labels for CDs Only When Customers Buy Them


     
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  2. Cyrus-Brooks

    Cyrus-Brooks is a Featured MemberCyrus-Brooks The Black Vulcan
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    It looks like CDs are gonna go the way of other obsolete platforms like cassettes, 8 tracks, and vinyl records. Downloading and streaming is killing CDs .
     
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  3. Kobalt

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    I was just telling my brother today that I miss the feeling of going into a music store and browsing. Hell, I even remember when I would physically pre-order new albums at Sam Goody (RIP). I can admit that I am part of the problem because it is much easier as a busy adult to purchase from iTunes, order music online, or to just using a streaming service and have the music come to you. Nowadays, I may purchase one to five CDs a year if that.
     
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  4. African King

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    Yeah I Only check out music on Spotify. That's about all I need!

    I do miss going into Best Buy and 'fye' (RIP) and scanning the barcode of the packaging to preview albums at FYE. Good times but yeah I remember Mathew Knowles saying that CDs will be extinct in 5 years. He said that in 2012 and he is not off by much.
     
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  5. Omega Level

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    In actuality they are about a couple years late. They should have done this a while ago. Who the fuck goes and get a damn CD these days? LOL. With cell phones, youtube, apps, you have all the music you need on tap.

    Im waiting to see what the cable companies try to come up with. Because besides needing internet Wi-fi through them, why do you actually need cable besides the fact that you are use to televisions in the house.

    I met a dude that didn't have a tv at all. And he said he has been like that for years. He has a computer for special shows he likes and he reads. He stopped watching the news years ago he said, because it was too negative reporting only bad things. He said if anything of major importance broke out like aliens or the start of war he would eventually here about it from those around him. His point of view after thinking about it was refreshing. I think many may follow in that direction or some form of it in the future.
     
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  6. Kobalt

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    ^^ Basically the only TV that I watch nowadays is How to Get Away with Murder and Fixer Upper. I have YouTube and Netflix for visual entertainment purposes.
     
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