Album sales

Album sales have fared poorly over the past decade. The rise of online streaming services, such as Spotify and Apple Music, has accelerated the underlying decline in the popularity of physical record sales. These services typically require paying a subscription fee which then offers access to the provider's library, and entry by other firms has accelerated access to these services. Early in the past decade, digital downloads threatened physical albums. Demand for digital music has grown with the rise of technology capable of playing digital music files, which now range from specialist music players to smartphones and tablets. The rising popularity of digital music has contributed towards the decline in album sales as the ability to purchase and download tracks online made it easier for consumers to pick and choose the tracks they buy rather than committing to a full album by a particular artist. However, more recently, streaming services' rising popularity has started replacing digital music, further eating into album sales. According to data from the Official Charts Company, in 2020, streaming equivalent album sales, which uses a formula to measure the number of streams necessary to equate a sale of an album, reached 83.11% of total album equivalent sales in 2021, which measures total sales of albums including digital, streaming and physical sales. This was an increase from 72.6% in 2019.

IBISWorld estimates that album sales will decline at a compound annual rate of 19.3% over the five years through 2023 to reach 19.2 million. CDs remain the primary format for album sales, followed by vinyl and digital albums. CDs are estimated to have accounted for 55.2% of total albums sold in the UK over 2022, while vinyl claimed approximately 26.2% of the total and digital sales 17.6%; the remaining 1% was other physical sales, including cassettes. Over the past five years, sales of both CDs and digital albums have declined. Sales of CDs decreased 19.4% between 2021 and 2022, while digital albums fell at a rate of 19.6%. On the other hand, vinyl sales have trended strongly upward in recent years, cultivated by the nostalgia they elicit, growing 3.8% in the year.