We are at Defcon 1.
When the highest volume music store in the USA closes down, what's to follow?
When it only takes 62,000 units sold of a CD to reach the #1 spot, we have a problem.
The Virgin Megastore in Times Square has been a focal point for in store cd release performances, and the epicenter of all music store sales in New York City and the USA. With the ever failing business model of Major Labels, and the Economic status of America, it was no surprise to hear that this store would be closing. And not only this store but the San Fransisco Virgin Megastore is also closing in April as well. And it's all due to album sales. Album sales are down 45% since 2000. So, it's no wonder that the stores are closing. It was Tower Records a few years back, and now Virgin. The bigger they are the harder they fall.
So, the biggest question is: What will fall next?
With downloads up 27% from just 2 years ago, the new model shows who's next to take the plunge, Major Labels. A study showed that music downloads will grow at an annual rate of 23% and by 2012 they will surpass all CD sales.
So, what does a band have to do to get ahead in this business?
Well, you'll just have to wait and see.
Utilize the internet as much as possible. That's what bands have to do.
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