This chart tells how the internet has collapsed the music industry and opened new ways of buying.
Online music downloading and streaming has created severe problems for the traditional music industry. The sales of record stores and CD Albums experienced a decline of 76% and 50% respectively
Many major players of the music industry had to close or have been closing fast with the influence of the internet. For example, in 2004, HMV pulled out of the US. In 2006, Tower Records closed its 89 stores in the US. Sam Goody’s and Virgin Stores stopped its selling for the same reasons.
However the internet offered new ways of buying. While physical sales witnessed 5% decline in 2011, online music sales experienced 8.4% growth. In January 2012, digital sales with 50.3% of all music sales beat the conventional music sales.
One the other hand, Spotify a new way to access music becomes very popular. Users need not to store music on a hard drive or MP3 player, can directly stream music from anywhere else.
Even though online music is consumed very much, still there are around 2,000 music stores existed and Vynil Album sales gained 39% growth due to unmatchable advantages.