Best Buy Dropping CDs

Who would have thought one of the largest music retailers would be dropping CDs in favor of vinyl LPs.  Just more evidence that the vinyl fad really isn’t a fad after all.

According to a Billboard report, CD sales dropped 18.5% last year accounting for only $40 million in revenue for Best Buy in the US.  Best Buy has indicated that it will continue to market vinyl LPs for at least another two years displaying them with the turntables they sell.

Target is also seeing CD sales drop and is now insisting that they will only pay for a CD when it is sold moving CD sales to a consignment model.  Presumably, Target would then be returning slow moving titles to the labels and distributors.  This would make it near impossible for CD labels and distributors to viably produce CDs in cost-efficient numbers.

These developments may not mean the death of CDs, but rather a shift in the manufacturing, marketing  and distribution processes.

I have to wonder if CD labels and distributors will be able to significantly change their format to adapt to the realities of streaming music.  Will there be a place for on-demand CD production or mix-tape type CD sales?

Let’s watch this one spin out.