The Rise, Fall and Afterlife of the CD, As Seen Through Billboard’s Archives
Old formats never die — they just spin around again. Compact disc sales first outpaced vinyl in 1987, but the CD has been slipping for almost 20 years, eclipsed by downloads and then streaming. But hold on to those CD towers: In 2021, new releases from Adele, BTS and Taylor Swift drove disc sales up 1.1% in the first annual increase since 2004, according to Luminate, formerly MRC Data. Could a future “CD Store Day” spark an eventual comeback?
Laser-Focused — On Money
“According to insiders, Sony’s launch of its Compact Disc digital audio disk system within the next year will be unparalleled in consumer electronics history in terms of ad and promo mega bucks,” reported the Feb. 13, 1982, Billboard. Big bucks weren’t just for the ad campaigns, though. Early CD players cost around $750, or about $2,100 in today’s dollars, adjusted for inflation — about the cost of 17 years of Spotify.
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My Digital Romance
More affordable models were introduced the following year, and the Oct. 1, 1983, issue reported that Sony would launch a $470 player “aimed at the ‘man-in-the-street’ audio fans rather than the up-market hi fi buffs.” The Oct. 22 Billboard detailed Sony’s “A Date With Digital” push to target younger consumers. Among the enticements: “an index search feature designed to help the user locate a specific subcoded portion of a long classical movement.” Swoon!
Never Mind the Bollocks, Here’s Gustav Holst
Early adopters don’t always have the hippest taste. The Oct. 29, 1983, Billboard cited a 137-store survey that found classical music accounted for 74% of CD sales, followed by pop at 21%. PolyGram revealed that its “hottest titles” were the soundtracks to Chariots of Fire and Fame, plus a recording of Gustav Holst’s The Planets. “We know who will be buying the player,” a PolyGram executive said in the June 19, 1982, issue, “and they’re not people who will be buying punk.”
The Longbox Goodbye
It took years to standardize CD packaging. In the March 7, 1992, issue, Billboard reported that the six major-label groups had finally settled on CD-size packaging, a move that “seals the coffin of the infamous 6-by-12-inch cardboard longbox.” Not everyone took a shine to the jewel case, however. “It’s outrageous. The longbox is a good anti-theft package,” said one record store owner. “Also, I am going to have to get new fixtures.” Tower Records’ Russ Solomon was equally angry. “We’re dealing with people called ‘suits,’ ” he said in the March 28, 1992, issue, “and suits don’t speak the same language we do.”
Sales Freeze
For the last two decades, Billboard has tracked the format’s decline. “CD sales are falling precipitously and digital sales continue to accelerate,” according to the Dec. 22, 2007, issue. On Dec. 20, 2008, Billboard reported that most retailers had “plans to reduce CD floor space in the new year.” One California record store owner fought cooling sales with ice-cold treats: “I can make a 50% margin on ice cream, while on CDs I can lose two bucks.”
This story originally appeared in the March 26, 2022, issue of Billboard.
