Best Buy to stop selling CDs

07 February, 2018, 01:45 | Author: Lora Ball
  • Toys ‘R Us and Best Buy Restock Nintendo Switch Units this Weekend

The company will stop selling CDs in stores on July 1, according to Billboard. According to the publication, the company's CD sales are only generating a paltry $40 million annually.

The speculation is also lumping DVDs into the mix, as Target was also negotiating their terms of payment to DVD distributing (i.e. paying for them only when they are scanned at the register, VS buying a supply and returning them).

At the same time, Target has demanded that suppliers take on the inventory risk on sales of CDs. But that report also found that CD sales fell about 4 percent over the previous year, and added that CDs "may not fade away anytime soon".

The consumer electronics chain was once a significant seller of CDs in the United States market, and only increased in importance as the number of specialist music retailers started to decline in the 2000s.

More news: North Korea says U.S. actions threaten inter-Korean relations

Digital music sales and streaming have made the venerable music CD very close to obsolete for some consumers. This year we will likely see the death of another famous music format.

Target told labels that it no longer wants to take inventory risk on the sales of music and video a year ago. Currently, Target buys CDs in bulk, putting it at a disadvantage if a title fails to sell. For example, a year ago Target moved 500,000 copies of Taylor Swift's latest, Reputation. Revenues from services providing streaming music represent 62% of the entire market for first six months of 2017, shows new numbers just released by the music industry's trade group RIAA.

"Entertainment has been and continues to be an important part of Target's brand".

Recommended:



Popular

Mets reportedly sign Todd Frazier to a two-year, $17 million contract
The Mets added some instant pop to their lineup Monday, reportedly reaching a deal with free-agent third baseman Todd Frazier . The 31-year-old third baseman hit a combined.213 with 27 home runs and 76 RBI with the Yankees and White Sox last season.

'Westworld' Season Two: Premiere Date Revealed & Trailer Aired In Super Bowl Ad
The second season of Westworld lands April 22 internationally, and it's shaping up to be a bloody, bruised battle on all sides. The first trailer for season two appears to pick up exactly where the first season left us, in turmoil.

All leadership united on Kashmir issue, Pakistan to continue its support: PM
He said brutal force and propaganda cannot gag the voice of freedom, nor it can alter Pakistan's resolute and principled stance on Kashmir.

3 officers shot in Colorado Springs, 1 dead
El Paso County sheriff's deputy Micah Flick was shot and killed Monday during a struggle with a male suspect with a gun. A procession will take a slain El Paso County sheriff's deputy across Colorado Springs at 7:30 p.m.

Bill Belichick characteristically bristly, cryptic when asked about Malcolm Butler's benching
New England coach Bill Belichick told NBC at halftime only that he "made the decision that gives us the best chance to win". Belichick said immediately after the game that benching Butler was a football decision, and was not a disciplinary action.

LAPD: Shooting by 12-year-old girl at school 'not intentional'
Jordan Valenzuela, 12, told The Associated Press he was in class when he heard the bang and screaming. The school was placed on lock down for around 20 minutes as police searched the school's premises.

Newcastle hold on to draw with Eagles
Luka Milivojevic converted a second-half penalty to earn Crystal Palace a 1-1 draw at home to Newcastle in the Premier League . They remain 16th but at kick-off had been level on 24 points with 19th-placed Huddersfield, Stoke and Swansea.

Dow loses more than 650 points as United States stocks swoon
Looking ahead, observers advise watching the Asian markets Monday for its likely negative reaction to NY trading today. Investors are anxious it could prompt the Federal Reserve to raise interest rates faster than expected.

Poor US leadership will lead to major war with Russia, China
The lower-yield weapons would enhance the credibility of the USA arsenal, the review claims. China has also long maintained it will never allow first use of its atomic weapons.

An opening for Trump to fire Rod Rosenstein
President Trump is pictured walking away from Marine One after returning to the White House. Rosenstein, it would appear , is willing to make certain compromises to please his boss.