Nielsen Music State of the Music Industry NARM Presentation

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Nielsen MusicState of the Music IndustryNARM
Presentation
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Topics

• State of the Industry
• Year to Date 2004 Facts Highlights
• New Release Analysis YTD 2004 vs. 2003
• Album Sales Trends
• Store Strata Trend
• Catalog vs. Current
• Genre Outlook
• Top 200 Chart Analysis
• The Digital Impact
• The Music Video Explosion
• Home Video Market
• Question Answer

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Music Industry 2004 Facts Highlights
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State of the Music Industry Year-to-Date 2004
vs. 2003

• Overall Music Sales, are up 7, compared to being
  down 8 percent in 2003.
• Albums Sales are up 7, compared to being down 9
  last year.
• CD Album Sales, which represent 97 of all music
  sales, are up 9 vs. down 7 last year.
• Classical, Latin, Alternative and Country have
  all seen double-digit growth in sales over last
  year. Soundtracks, gospel, jazz and new age
  album sales are all down compared to 2003.
• Album sales at Mass merchant stores are up 12
  an increase of 15 million albums.
• Internet album sales (physical) are 3 of all
  album sales and are up 13 over last year (11.9
  mil vs. 10.6 mil).
• Single Sales are down 31, as compared to 5 in
  2003.
• Music video sales continue to grow tremendously
  with sales up 96 over 2003
  (15.9 mil vs. 8.1 mil).
• DVD Music video sales are up 107 over 2003
  (15.7 mil vs. 7.6 mil).
• Digital track sales in 2004 have exceeded 70
  million (since we began tracking in June 03,
  more than 90 million tracks have sold).

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State of the Music Market Year to Date 2004
Highlights

• One week total album sales exceed 17 Million
  (Feb. 15th) BIGGEST volume sales week in
  SoundScans history (outside of holiday season
  week)
• In its debut week, Norah Jones Feels Like Home
  exceeded One Million sales It was the first
  time since NSync Celebrity, (July 2001) that
  an album exceeded 1 million in its debut week.
  Less than a month later Ushers Confessions had
  first week sales just under 1.1 million.
• One week Digital Track Sales topped 2 Million
  mark for the first time (2/15).
• Latin album sales are at an all time high since
  the inception of SoundScan with sales just under
  19 million for the year.

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Album Release Analysis YTD 2004 New Albums
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New Release FactsYear-to-date

• Total new album releases 2004 22,977 2003
  21,567
• Note There were 38,000 albums released in 2003.
• A total of 105 million sales from new albums
  released in 2004 68 titles make up 50 of those
  sales. (53 million)
• 80 of all New album sales in 2004 have come from
  500 titles (85 million sales).
• 58 of all albums released in 2004 have sold less
  than 100 units each.
• 82 of all new albums released in 2004 have sold
  less than 1,000 units each.
• 4,250 albums have been released by major labels
  so far this year and have sold 90.1 million
  albums vs. 4,771 albums in 2003 with sales of
  87.9 million.
• 86 of all album sales from new releases in
  2004 were released by major labels.

5,763,000
5,264,000
2004
2003
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Album Sales Trends Year End YTD 2004
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Overall Album Sales Year-End 2003
2000 4 Titles 32 million units NSync (9.9),
Eminem (7.9), Britney Spears (7.9), Santana (5.9)
Pop Phenomenon
40 of all album sales (265 mil.) were from
albums released in 2003.
3.9
5.9
- 2.8
9.4
- 12
- 3.6
5.6
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CD Album Sales Year End 2003
.8
8.9
11.7
- 8.8
- 2.0
14.9
12.7
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Overall Album Sales YTD 2004
January August 15, 2004
27 of all albums sales (105 mil.) have come from
albums released in 2004.
-1.7
5.6
5.7
8.9
-10
7.5
5.7
-8.6
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CD Album Sales YTD 2004
January Aug. 15, 2004
2.7
9.2
-8.5
10.9
11.5
-6.9
14.6
12.9
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CD Album Sales Trend by Qtr Percentage Change
YTD 2004
Change over last year
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Store Strata Genre Sales Trend
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Store Strata Sales Analysis Year to Date 2004
Internet albums account for 68 of
Non-Traditional album sales.
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Store Strata Album Sales Trend Year to Date 2004
-3
4
-14
-10
12
2
1
-3
-11
-20
-19
-
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Album Genre Sales YTD 2004
Percentage Change by Genre Classical 20.2
Latin 16.3 Alternative 13.2 Country
12.6 RB 9.6 Metal 8.5 Rap
7.7 Gospel -1.7
Soundtracks -14.9 Jazz -18.8 New Age -25.0
Year-to-date, Latin music sales are at an all
time high. Classical music sales havent been
higher since 1999.
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Current vs. Catalog AlbumsYTD 2004
January Aug. 15, 2004
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Top 200 Album Chart Cumulative Volume by
Position YTD 2004
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Top Album Chart Volumes by Position YTD 2004
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Digital Downloads State of the Market
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Digital Download Data Providers

• Digital sales are collected from all major
  download providers
• iTunes - Musicmatch
• Napster - MusicNow (Full Audio)
• MusicNet (AOL) - Sony Connect
• Rhapsody (Listen.com)
• Liquid Digital Media (Walmart.com)
• Buymusic.com

Coming Soon Microsoft (msn.com)
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Weekly Digital Tracks Year to Date 2004
Digital Track Sales 2004 Digital Tracks
72,640,000 Physical Single Sales 5,406,000
Digital download track sales will break 100
million downloads before the end of the year
100 million to the industry
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Best Selling Tracks YTD 2004 Release
to Date
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Radio Airplay vs. Sales
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Music Videos State of the Industry
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Music Video Sales AnalysisYear-End 2003
105
78
23
63
78
- 46
- 56
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Music Video Sales AnalysisYear to Date 2004
January Aug. 15, 2004
107
96
40
68
22
69
29
136
- 22
- 40
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Top Music Video DVDs Year to Date
The top 50 DVD music video titles account for 31
of all DVD music video sales vs. 41 in 2003. 17
titles have sold more than 100k each in 2004 vs.
28 titles for the entire year in 2003.
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Music Video Sales by Store Strata
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Home Video DVD vs. VHS State of the Industry
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Home Video Sales Analysis Year-to-Date
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Home Video Genre Sales Analysis Year-to-Date 2004
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