Sustained shifts in consumer preferences and competition from large discount and digital music retailers have dampened consumer demand for the Record Stores industry. With increased accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined over the past five years across all music industries. While consumer sentiment is expected to continue to improve in the next five years, this industry will fail to experience revenue growth. Consumers who are accustomed to digital music are not likely to return to making regular purchases at record stores. Additionally, increases in disposable income will lead consumers to spend more on electronics that are compatible with digital music and streaming services. Successful operators will continue to adjust their product mix to cater to these digital and internet-based technologies, further decreasing demand for prerecorded products. Over the next five years, industry revenue is forecast to continue to decline.
Record stores primarily retail prerecorded audio and videotapes, compact discs (CDs), digital video discs (DVDs) and phonograph records. Online sales are excluded from this industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.