Best Buy will cease selling CDs later this year
A technologically obsolete medium that self-destructs over time? No wonder only 89 million CDs were purchased in all of 2017. Back in 2001, that number peaked at 800 million and many of those copies were sold by retail giants like Best Buy and Target. But as interest in physical discs has waned, so too has the amount of space these stores dedicate to such inventory. Soon enough, Best Buy will cease selling CDs altogether, while Target will ask record labels to front the costs, according to a new report from Billboard.
Come June 1st, Best Buy will no longer offer CDs in its retail stores. Physical music is only generating around $40 million in annual revenue for the company and executives would rather dedicate the floor space to more lucrative items, Billboard notes. Best Buy will continue to sell vinyl for at least the next two years, but titles will now be merchandised with turntables.
Meanwhile, Target is reportedly pressuring record companies into signing consignment agreements. Under such a scenario, the label would be required to purchase back any unsold inventory. Though Target only stocks 100 titles at any given time, it’s still responsible for a sizable chunk of sales. For example, last year Target moved 500,000 copies of Taylor Swift’s latest, Reputation. Even still, one major label has already turned down Target’s demands, while two others are undecided, according to Billboard.